This is going to be a very short, but very informative post where I will discuss the basics of budgeting.
The cornerstone of creating your peace financially begins with a budget or a monthly cash flow plan. It is a very simple and easy system to use.
The best and most detailed monthly cash flow plan I have seen is the one created by Dave Ramsey. I’ll link to it here. This plan doesn’t allow you to forget about anything that is attached to your monthly income.
When I created my first budget, I typed everything in Excel just as it is on the cash flow plan. I kept it very simple though and listed my total monthly “Income” at the very top and subtracted all total monthly “expenses” following. The final row was the “Balance” which should be zero as we are creating a “zero based budget”. Because we were paying off debt, I also included a row for “Extra Money to Pay Off Debt”. I kept this separate so that I could on purpose put money towards paying off the debt.
Again, this is a very basic system that can also be done with just a pencil, paper and a calculator. It’s all up to you and what you are comfortable with. What’s important is that you get started. Get it done today and let’s see what you can accomplish.
Thanks for reading and enjoy creating your life of freedom!!!
Stay tuned for more info and feel free to subscribe via RSS or E-mail!
{ 5 trackbacks }