Money, says the proverb, makes money. When you have got a little, it is often easy to get more. The great difficulty is to get that little. Adam Smith
For most of us, making a budget is one of those tasks that we hate to even think about. But it’s really important to map out your income and expenses/purchases. If you want to save money, there are a million ways to do it, but first, you must know what’s coming in and what’s going out. Believe it or not, a realistic budget is your best weapon to prevent overspending and to help you save money. As you start the new year, what better time to get your finances in hand?
What’s Coming In?
Calculate all of your income-salary, bonuses, awards,tips, tax refunds, alimony, child support, dividends, interest, and any other sources.What Are You Spending?
Developing your budget is much simpler if you have records of what you are currently spending. Use your check register, charge account bills and on line banking records to help jog your memory. Rather than saying "I think we spend about $300 a month on groceries," you need the exact average monthly amount you spend for various items. Keep bills from utilities, physicians, service stations and any expense that varies from month to month. Once you have a running total for several months you can develop an average budget and adjust it up or down as needed.
