Budgeting Made Easy
Budgeting is work but there are tools and resources available to make it easier.
The objective is to have a balanced budget. What does that mean? It means that you are taking the time to spend within your means by budgeting your funds in advance. Only spend with a plan! That will make achieving a balanced budget extremely challenging. It can be especially tough when you have rising bills or unexpected repairs surfacing at any time. Creating a solid financial plan can ensure you have the funds available in those moments of need but also for when planning for the future. Here are some core steps in developing a budget to get started:
List Your Expenses
- Choose an app or pick up a notebook that you’ll use to track all your expenses: groceries, savings, restaurants, bills, birthday presents, etc. Be sure to keep an accurate record of how much you allocate for each fee on a weekly, monthly, and yearly basis, as well as how much you spend on each payment. Often banks or financial institutions have solutions available to help you with this, and they can even sync your expenses to the platform and pre-categorize them for automated tracking.
Reevaluate Earnings Periodically
- Any time your financial situation changes, you should reevaluate your budget and perform this when your earnings change. Did you get a raise? How will you allocate your new funds? Did new expenses arise? Are there areas where you can cut back on spending? Your priorities will change depending on where you are in life and your current goals. Reevaluating your budget will make sure your spending habits reflect what you hope to accomplish. Also, compare your earnings to your expense list to know what bills you can predict and what funds you have earned that can be invested or saved, and consider setting up vehicles to achieve this.
Don’t Give Up
- It’s natural to miss your budgeting goals every once in a while, especially when you’re first starting. Just keep tracking how much you spend on different expenses and, if necessary, rework your budget to something you can stay within. Sit down the month before to do your upcoming allocations and assess how you did the last month. It can actually be a fun exercise and a great way to get excited about your future.
Our Broker/Owner, Steve Prescott, has been the Dave Ramsey Endorsed Local Provider (ELP) for more than 10 years. This program has been rebranded to Ramsey Trusted. Steve follows the Dave Ramsey Baby Steps in his personal life and professional life. Our RE/MAX agent, Jennifer Davis, does too. She shares her thoughts on budgeting in this video. Watch to learn more. Be sure to subscribe to our YouTube channel for more real estate and financial tips! Use the contact form below to connect with a Cheyenne Realtor.
