They say that money is the root of all evil, but we know, it’s still debatable. What I can assure you is that there’s a root to all financial success that guarantees to jumpstart your financial condition–that is by creating a personal budget plan that lets you control the steering wheel of both your expenses and savings. Moreover, it will serve as your reference point on how you’ll achieve your financial goals.
Ask yourself these questions: Do you control your money or is it the money that CONTROLS you? Did it come to a point where you could not even trace your expenses? Do you ever wonder how come your pockets are left with only the spare change after a day of shopping? If you answered “Yes” on some of these questions, you have the greater chances of ending up with a lifetime paying off your debts. Worry no more because changing that future tragic story of yours has a very simple solution—and that’s to start a personal budget.
Here Are Some Smart Strategies in Creating Your Personal Budget Plan
Envision Short-term and Long-term Goals
You’re on a mission for your vision. Everything starts here. It is the idea that you’re willing to turn into reality. How do you see yourself in the years to come? Do you see yourself financially stable?
Make a list of your goals whether it’s for a short-term or long-term and rank them based on your priority. Short-term goals should take no longer than a year. Long-term goals, on the other hand, should let you foresee your financial progress throughout the years just like retirement and your child’s educational plans. These goals may change and you may add some other ideas to make it ideal for you to achieve them.
Net Income to Personal Budget Ratio
Your personal budget must always be relative to your net income. Thus, determining your net income is your first step in coming up with a personal budget. Stop setting your mind into spending all your salary and waiting for the next payday and repeating the cycle all over again. Living paycheck to paycheck is the unhealthy practice of most employed individuals. They would end up having no savings which will lead to debt during emergencies.
Track your Expenses
The next on the list is to determine where your money goes most of the time. You don’t need hound dogs to track down your expenses. All you need to do is list down all your expenses where your hard-earned money goes on a regular basis. Record how much you have spent on every expense you already made and do some adjustments. I’m not suggesting that you live in total frugality, you just need to lessen your expenses on leisure activities. In that way, you can save up some money to shoulder your other needs.
Draft your Budget Plan
Now, that you know your net income and have tracked your expenses, you can make a rough draft of your personal budget plan. You may include everything in your draft, your needs, wants, and how much you wish to save every month. You may also include on how you will pay all of your outstanding debts while doing your budget plan.
Ideally, you don’t need a financial expert in creating this plan, but you may just seek their advice later when you wish to finalize your personal budget plan.
Finalize your Budget Plan
Adjust your budget plan to your own needs and capabilities. When you have finalized your plan, set aside your fixed expenses and make adjustments to your variable expenses. It’s all up to you to decide how much you want to spend and how much you want to save. Prioritize what you see fits your current financial condition and to your current needs.
In finalizing your budget plan, keep in mind your daily budget and also your expenses for the following months, specifically, those with special occasions and gatherings.
You may also look for ways to spend less as it can add up to your savings in the long run. It’s also good to generate extra income with your hobbies and skills or by starting a small business venture.
Implementing your Personal Budget Plan
Now, that you’ve made your personal budget plan, it’s time for you to implement it. It takes discipline and a lot of courage to make your plan work out, but it will be financially rewarding if you’ll pull through this stage.
Meanwhile, here are some guide to help you implement your personal budget plan properly:
Make a Monthly Check-up
Just like our body, your personal budget plan needs regular check-up so that you can diagnose some improvements and pitfalls.
Of course, be ready with your remedies on how you will sustain improvements and prevent the pitfalls from happening again. It is recommended to make a monthly check up on your budget plan and make certain adjustments to maximize its benefits.
Don’t forget to include your budget for this tax season
It’s already the season to file your tax returns and some of you have back taxes to pay. Don’t wait for the IRS to come to you and garnish what’s left on your bank accounts. It will become troublesome if you’re doing a budget plan and the IRS comes knocking at your door unexpectedly. If you need help filing your returns or paying your back taxes, don’t hesitate to call Financial Rescue. We have tax solution programs that will perfectly fit your needs.
Paying off Debt on a Budget
One thing that hinders the success of your budget plan is when you’ve got outstanding debts. Some may find it difficult to budget and pay off their debts at the same time, that’s when this debt relief option come to the rescue–the debt settlement.
Debt Settlement Programs from Financial Rescue LLC will help you pay off your unsecured debt while making your personal budget plan work out. This program comes with a one monthly payment scheme that you can actually include into your budget plan, thus, making it part of your fixed expenses without any hassle. Furthermore, many individuals testify that by enrolling such programs, they’ve reduced their total debt amount by paying an average of 40-60 percent.