Budgeting Tips

What is a Personal Financial Budget?

budget –   noun. An estimate of income and expenses over a set period of time. “I am going to stay within my personal budget”.     Verb. To allow or provide a particular amount of money in a budget. “I am budgeting for my future goals and dreams”.

Let me add another definition for you; budget –   noun. A plan for your money. “I am going to budget for a new car in 3 years”.

A budget is simply a plan for your money. The more detailed the plan (budget), the more likely you are to achieve your financial goals and dreams. Chances are, you will live a long life and you will need money the whole time. It’s time to make a plan for those needs and start your journey toward your goals and dreams.

For a budget to be effective, a few things must happen

  • It must be written. If it is only in your head, you will never make it.
  • It must include everything. That’s not to say you won’t forget about something, but when you remember, or it comes up, then put it in your budget.
  • It must be managed. There is no gain in putting together a budget if you do not follow it, look at it and adjust it as necessary. A budget is dynamic and always changing. You must manage it continually.

Having a budget does not mean you go without what you want, it means you are planning for what you want. If your budget shows that you can’t make it to what you want, then you need to decide what is more important to you and make the necessary adjustments to achieve what you most want and work back from there. That is what a budget is for.

Money will always be a subject that will get people going. Money by itself will not make you happy. If you have a good plan for your money (a budget), then it can help you be really truly happy by allowing you the things you desire most in life. If you set goals and dreams for yourself, for your future, then you have a greater chance at achieving them. If you decide to go without a plan and just shoot from the hip, you probably will not make it and you may not be happy about what you end up with in life.

If you have income, expenses, goals and dreams, then you need to start a personal financial budget. Writing down everything you have coming in and everything you have going out is the place to start.

MazumaPro.com is the place to start.

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