A budget is one of the most overlooked, yet powerful tools in a persons financial success. You have to know what you have, what you don't have, and follow a "road-map" in order to get where you want to be!

If you stick to your budget, it will be the best friend you have, because a lot of financial stress comes from not knowing where your finances are, and not having a plan. In your budget is where you lay out your plan of how your dollars are spent, what debts are being paid down (read about debt), and how much you can save for the future.

Question: So why do so few people actually sit down and do a budget?

Answer: Many people just don't know where to start.

In answering this question in its simplest term, a budget should be your income minus your expenses. If your expenses are more than your income there are problems ahead, and if you are bringing more money in than you spend (which is the goal) you are doing great!

Actually breaking down and having a consistent budget each month can be a little more complicated, so access the free "Budget Calculator" from the link below and get to using the most powerful tool in your financial arsenal:

Budget Calculator Instructions:

1) Enter your monthly income after taxes.

2) Enter your monthly expense in each box that applies to your situation. (Example: If you do not have a mortgage, but pay rent, do not enter an amount in the "Mortgage Payment" box.

3) Enter additional expenses into the "Monthly Expenses - Additional Expenses" section by entering the name of the expense in the left hand box and the amount of the expense in the right hand box.

4) Enter the amount of savings into the appropriate boxes and use the "Additional Savings" boxes as necessary. Do not enter money that you have already put into a 401K or Retirement Plan at work, since those dollars are already taken out of your paycheck!

5) Press the "Calculate Budget" button to find out how much money you have remaining. If it is a negative number, check your expenses and savings to find out what is causing you to spend more than your make (uh oh!), and if you have money left over (oh ya!), put more money into savings or put it towards "Fun and Entertainment".

6) "View and Print" your budget and stick to your plan! (Budgets will only work for people who follow them!)

 

 

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