Q: Is creating budget plan really all that important?
A: In short, yes budget plans are very important. People often think that budgeting for their personal finances is not helpful or is a waste of time, but if a company didn’t have a budget plan you would question the soundness of their business. You have to remember that a budget is simply a plan to manage income and expenses in a way that will give you peace of mind and maximize your paycheck.
Q: That’s an excellent point Jarek! So, what is the best way to start a budget?
A: A budget doesn’t have to be complex to be effective. Start with tracking all of your spending for three to six months. Then start making decisions on which expenses could be reduced or eliminated altogether. Next start making habit changes to lower or eliminate those costs, and put the savings into a savings account.
Q: What are some common areas people can cut back on?
A: Most people have heard the “cut back on going out to eat” line, but it really is an effective way
to save some money every month. But another area to look at is your electricity usage or even reviewing your insurance policies to make sure you’re only paying for what you need. Once you know where your money is going it easier to understand what area you can cut back on.
- My Money Monday, Feb. 26 - Creating a budget plan
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- My Money Monday, Feb. 12 - Spending your tax returns wisely
- My Money Monday, Feb. 19 - What makes a credit union different from a bank?
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- My Money Monday, March 26 - How to build credit and get a credit score
- My Money Monday, April 16 - Teaching kids good money habits