Budgeting for a Better Tomorrow

Are you worried about going into debt? Have you ever heard the saying, “You have to spend money to make money?” If this is true, then do you succeed in making money without falling into the hole? Well, as any successful business owner knows, you need to have a plan set out to get on the right financial track. This plan is known as a budget. We often think about budgets in corporate settings for a company, or may even find them in non-for-profit settings, such as churches. However, one may set up a budget for personal gains and expenditures to help maintain their lifestyle and livelihood.

Trying to prepare for a better financial future is easier than you might think. Although, planning for a brighter tomorrow requires mindfulness toward organization, with sitting down and taking a financial inventory.

Posted on consumer.gov, the Federal Trade Commission has provided an outline of how to set up a personal budget. They offer tips on how to use a budget, explaining that it helps see where you spend money, see where you can save, and then make a plan on how to spend and save your money. When you find ways to spend less money, then you have more to save…That’s when you can bring your extra cash, and ask about opening up a new savings account at Murphy-Wall State Bank and Trust Company.

Saving money is not only challenging for millennials and generation Z representatives, but it is hard for anyone who has expenses that go up, while income does not. According to the FTC, savings come in handy when unexpected issues like emergencies pop up. A well-tended savings account comes in great when it comes time for buying a new car, truck, or even a house. Perhaps you have goals of traveling or going to college. Neither of those are cheap. If you have had money saved up over the years, you may not have to borrow.

Budgets may come in annual overviews, but the one set out from the FTC concerns focusing on a single month. Start out with your income. How much have you made from paychecks and other income for the past month? When you have totaled all of you r regular deposits and benefits, then you may move on to tally up your expenses.

What have you spent money on this past month? Consider aspects ranging from housing bills, groceries and fast food, gas money, car insurances, health insurance, medicine, child care, clothing, entertainment, reoccurring fees, and other expenditures that may apply such as student loans and credit card payments, where applicable.

For the end result, one must take the total amount of their income, and subtract the total amount of their expenses to see if they have a positive or negative budget. Is your total income amounting to more than your expenses? If so, then you have money left over to save or spend… Are your expenses more than your total income? Well, then you’ll have to look over your budget and decide what expenses to cut in order to balance your own budget.

For more information, visit

https://www.consumer.gov/articles/1002-making-budget

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