So, how do you build a sustainable budget? Good morning everyone and welcome back to Finance Friday. This week’s Question of the week, comes from K.H.
“I know what I have to do but how do I start and then keep up with my budget?”
Well, K.H., that is the magic question. We can go over myths, studies and tips over how to budget but how do we get started? Here are 3 tips on how to get started with creating a budget:
- Don’t start with numbers
- Always start with values and priorities that are important to you and your family. Create a Vinn Diagram and highlight activities that you like to do individually, activities with your spouse and activities as a family.
- Know your starting point
- Don’t start from today. Try moving back a few months. For a more thorough picture, go back and track your last12 months of expenses.
- Write out your irregular monthly expenses
- These are expenses that don’t happen monthly. Some examples are holidays, family celebrations, vacations, taxes etc.
Your Financial Planner can create a Budget Spreadsheet that can organize all of this information for you, so that all you have to do is look at how much you should spend for that particular month on a monthly expense.
Now it’s your turn. How would you build out your budget? Please send me your answers and If you are interested in additional budgeting tips to hector@hrcfin.com. Also, don’t forget to follow HRC Financial on Facebook and LinkedIn for more Finance Friday discussions.
Thank you again everyone and have a wonderful weekend!