Summary of Budgeting
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Summary of Budgeting
If you commit to the budgeting process, you will learn a great deal about your income, taxes, expenses and savings. Understanding these concepts will help you control and manage your financial life effectively. Budgeting is the starting point for building your short- and long-term future.
Start using budgeting tools early. They will put you on the road to saving for the important goals you set in your life.
Want to take the next step? Try these suggestions to start.
Things to do
- Make a list of your monthly income sources during the year. This is your starting point for your budget. Be sure you are using net income.
- Identify and write down spending categories that apply to you.
- Make a list of financial goals you want to save money for.
- Track your expenses for a month and evaluate how you spend your money.
- Identify which expenses are fixed or variable, needs or wants.
- Identify ways to cut spending and increase savings.
- Research budgeting tools for computers and other electronic applications.
- Contact your financial institution to see if it offers an online budget program; if so, start using it.
What you have learned
- What Is a Budget?
- The Anatomy of a Budget
- Your Spending Choices in Your Budget
- Budgeting Activity
- Selecting a Budgeting Tool
