Every Household Should Have a Budget! The key to financial success is to have a plan. So to formulate that plan, you need to have a household budget.
So let's talk about how to prepare your budget. The biggest obstacle for most is just getting started. It seems like a daunting task. But these helpful hints will get you started. Here is what I recommend my clients do first. For the next 30 days, I want you write down every penny that you spend.
At the end of 30 days, tally your expenses by category.
How much did you spend on housing?
How much did you spend on utilities?
How much did you spend on groceries?
How much did you spend on your vehicle?
How much did you spend on clothing?
How much did you spend on entertainment?
How much did you spend on medical expenses?
How much did you spend on insurance policies?
How much did you save?
I like to put all of this in a spreadsheet so that changes can be made easily.
In my next blog we will talk about how to put the budget together.