Budget Time

The greatest wealth building tool is our income but the problem is that the money we make just seems to float away every month, leaving no money left to save. Well that's a sign that we need a budget. We need to control our money and tell it what to do. In order to do this we need to write down where every dollar should go on paper before the month begins. This way we actually see all of the money we have and where it is being spent. Then almost magically we will find that we are spending far too much money eating out that could be used to pay down debts or save for retirement. The budget doesn't have to be a complicated 62-page spreadsheet itemized down to a slice of bread, but it does have to exist! A budget can be broken up into 10 key categories.

1) Giving
2) Saving
3) Housing
4) Utilities
5) Food
6) Transportation
7) Clothing
8) Medical
9) Personal/Recreation
10) Debts

These are the main categories that should be planned for at the beginning of each month. Chances are we know how much housing and utilities costs this month but what about food and clothing? Do we really know down to the dollar how much we actually spend on food? For example, if you are eating out at restaurants a lot food can start to consume 25%-50% of your income! Also don't forget to plan in some money to have fun with or buy something that your really want. Remember a budget is not a punishment its simply telling your money how to work for you. This puts you in control of your money and when your in control that's when wealth building begins.

--A Future Millionaire

P.S. If you want help with starting your first budget I would suggest this website. It quickly shows you what you should be putting toward each category in a easy to use app.