subject: Budgeting, your main weapon in this economic crisis [print this page] How good 2010 has been with the determination of a "New Year, New Life!
But in a year of economic uncertainty it is essential that you make a successful plan to eliminate the financial mistakes you could have done in 2010 and make the crisis affects you as little as possible. For this, the first step is to establish a good budget.
Be realistic in your calculations Money has the power to mysteriously disappear between your fingers, but a budget is the weapon that will help you control it. You do not have to be a professional accountant, but only have paper and pencil, and the discipline and thoroughness of writing everything.
I do not ask for great sacrifices of savings, but only you figure out what happens to that money coming out of your wallet, If you succeed, and yes you can do it, you'll have won half the battle for your finances. From the beginning, you should make yourself a target budget that fits the reality of your needs and possibilities, and comply to it. Write down and add up all your fixed monthly income, and compare with your fixed and variable costs. Do not leave anything out, however insignificant it may seem. Then you can determine if you should cut your expenses, or whether it is essential that you try to get some more income. Save at least 10%
Try to put 10 percent of your monthly income into a savings account, and if you're raising money for something specific (for example, a party of fifteen or university), these savings must be independent. Include in your budget to reduce or pay off your card debt and other amount to create an emergency fund. You will see how, ultimately, your wallet will thank you.
It is essential that you define your priorities. As you rarely have money for anything you want, when you are clear about what is most important to you and your family it will be easier to budget cuts. Analyze how to fulfill your weekly plan and make adjustments on the fly, adjusting the belt if necessary. Believe me, taking control of your finances is the first step towards your financial freedom and to a achieve a far more comfortable future.
