What a month we’ve had, discussing all of the different parts of financial organization.
Balancing the in-come and the out-go can be a tightrope but with a little planning and organization it can all come together.
All about Budget Planning
- In-come versus Out-go: The most basic budgeting rule is to make sure that the out-go does not exceed the in-come.
- Fixed and Flexible Expenses: Some expenses are non-negotiable such as the mortgage but many are flexible in the sense that they could be managed differently.
- Spending Tracking: Tracking the incoming and outgoing dollars for two or three months to truly see your money is doing.
- Debt Reduction: The key to reducing your debt for good is bit by bit. Rarely do we have a huge cash influx in order to make a big dent.
- Saving Tracking: Having a plan goes a long way to being successful at truly saving money.
More about Expense Tracking
- What are your largest expenses? Take a look at your biggest expenses first before addressing the smaller ones.
- Where can you save money on outgoing expenses? Sometimes it isn’t about the big savings, it’s about the little ones such as a $5 coffee here or a $10 lunch out there.
- What do you want to use that savings toward? Keep your goals in mind in order to keep yourself on track!
Time to talk about Debt Reduction
- The bottomless well — The list of potential debt can be as long as a CVS receipt. It adds up one charge at a time until you’re underwater completely.
- More than the minimum — Even if you can only afford an extra $10 per payment, it will add up.
- Self-fulfilling cycle — The more debt you pay off, the more money you will have to put towards other debt.
How about Savings Tracking
- Where will the savings come from? Even setting aside just $10 per paycheck can add up towards your savings goal.
- What are your savings goals? Speaking of which, don’t forget to set that goal! It will help keep you on track.
- What will keep you motivated? There really isn’t an immediate payoff to a savings goal so make sure you figure out what your true motivation is.
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