Dr. Judith Gerhart, CFP
Certified Divorce Financial Analyst 
« Financial Wisdom Success Tips | Main | Tips to Lessen Your Financial Risk »
Create and Maintain a Budget
January 6, 2009
The first step to avoiding the troubles of financial debt is to create and maintain a budget. It’s not as intimidating as it sounds, don’t worry.
First off, create a list of all your monthly income and also a list of your monthly expenses. When determining income, list all sources including alimony, child support, side jobs, etc. In calculating expenses, be sure to include housing, food, transportation, utilities, entertainment, etc.
Adjust expenses. If it is a small discrepancy, it may mean reducing some minor expenses like entertainment or cell phone plan. If the deficit is larger, you may need to downsize your vehicle or living arrangements.
Additionally, consider if you need to add new categories. Some areas that are often overlooked are debt reduction, emergency savings funds, and retirement savings.
If executed properly, a budget will allow a person to simultaneously meet their expenses, place money into savings, and pay back outstanding debts. Therefore, it is anyone’s best interest to create and implement a budget.
By: Sim
Posted by Judith Gerhart on January 6, 2009 | Permalink | Post a comment
Topics: Finance |
