Budgeting is about goal setting. Turning chaos into control and achieving success. Budgets are the numbers behind the goals. Failure to plan is planning to fail.
Goals should be Specific, Measurable, Achievable, Realistic and have a Time frame.
If you do not achieve your goal in the specific time, you have the opportunity to review, identify the problem/s, learn from the mistakes and try try again – don’t give up.
Getting started – first you need information – what happened last year is the start of your budget for next year. Adjust last years figures with any changes you know about. Once you have the annual list of income and expense you can total them up. Subtract the total expenses from the total income and you will be left with either a surplus or deficit. A surplus is great and allows you to plan how you would like to use this money. A deficit will need to be funded so review all the items until you are comfortable with the outcome. Knowledge is power. Celebrate reaching your goals.
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