ARE YOU BALANCED?
Now that you’ve completed the income and expenses tables, you can clearly see
how much regular income you receive, and where all that money goes over your chosen period. Subtract your total expenses from your total income.
If your answer is:
1). Positive, your income is greater than your expenses. This means you could be saving some money.
2) Zero, your income equals your expenses. You may want to consider reducing some expenses in order to build up some savings.
3) Negative, your expenses are greater than your income. This means you are living beyond your means and should think about finding ways to cut back on your expenses. The bigger the negative number the more you will need to reduce your spe
nding.
Now that you’ve completed the income and expenses tables, you can clearly see
how much regular income you receive, and where all that money goes over your chosen period. Subtract your total expenses from your total income.If your answer is:
1). Positive, your income is greater than your expenses. This means you could be saving some money.
2) Zero, your income equals your expenses. You may want to consider reducing some expenses in order to build up some savings.
3) Negative, your expenses are greater than your income. This means you are living beyond your means and should think about finding ways to cut back on your expenses. The bigger the negative number the more you will need to reduce your spe
nding.SOME PROS & CONS
A budget is the best way for you to get an overview of your financial position. If you are serious about taking control of your finances it is a step you need to take. You may find some things you weren’t expecting and it can help you to establish some savings goals. When you start the process be aware that it can be time consuming and fiddly translating your day-to-day income and spending into a budget. And you may not like the result. Sometimes it’s easy not to know just how much debt you have.
A budget is the best way for you to get an overview of your financial position. If you are serious about taking control of your finances it is a step you need to take. You may find some things you weren’t expecting and it can help you to establish some savings goals. When you start the process be aware that it can be time consuming and fiddly translating your day-to-day income and spending into a budget. And you may not like the result. Sometimes it’s easy not to know just how much debt you have.