Do you dream of financial security? Working a 9-5 job and bringing home money supports you and your family but do you have dreams you are not realizing?
Making a budget plan is the only way that you can secure your financial future and realize your dreams. Whether you are barely making ends meet or you are making a decent amount of money, making a budget plan is the only way to harness the power of your money and put it to work for you.
Before you set about making a budget plan, what is it you want? You can’t craft a vision of your future if you don’t know what it is that you want. What are your dreams and goals? Do you want to take a nice vacation? Do you want to buy a new car? Do you just want to pay off your debt and not struggle every month?
Your dreams don’t have to be grandiose but you need to identify them and write them down. Then you can decide the best way to get there by making a budget plan and getting a grip on your money. No matter how much money you make, the extra money can tend to slip away from you without a plan.
Figure out how much money you bring in every month and then figure out what your expenses are. Usually the income part is easy but the expenses part can get complicated. Start with your fixed expenses like your mortgage / rent, car payment, insurance and anything else that is the same every month. Then move on to figuring your variable expenses but be sure and plan high rather than low.
After you know what you make and what you spend, subtract your expenses from your income. The number left over will either leave you money at the end of the month, show that you are breaking even or that you are overspending. If you are overspending or breaking even, something has to change. Some solutions are to cut your expenses, find cheaper housing or maybe even get another job in order to not spend more than you make. You will have to decide what works for you.
The bottom line is that in order to realize your goals, you have to be able to save money each and every month. If you have to, put your savings toward getting out of debt at first. Then as your debt is paid off, you will have even more money to put towards saving for your dreams and goals.