Technology Solutions Private Limited
Technology Solutions Private Limited
There is a reason that businesses use receipts and record books to closely track how much money is coming in and out. Keeping organized will allow you to make future financial decisions on full information. This section will walk you through the steps to creating a plan for your personal finances.
1. Basic budgeting skills can be the difference between financial success and unexpected financial distress. This is much more easily said than done. Staying organized can be one of the most difficult steps for anyone trying to keep a balanced budget.
2. The goals of this chapter are:
1. To give you an understanding of how common your situation is.
2. To outline benefits and process for creating a spending plan.
3. To discuss financial priorities and goals and the steps needed to achieve them.
1. Write it down – make a budget
2. Set priorities/ goals and keep track
3. Talk to your family about your situation – they need to understand how financial choices are made
4. Plan for the unexpected
5. Take action if income drops
6. Don’t rely on credit
Would a spending plan help you?
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Debts are just one part of where we spend income. It is equally important to understand how much money you spend on the day to day expenses in your life. There are several different types of expenses to be aware of when making a budget:
Over the course of a month, you probably spend money on both fixed and variable expenses. Fixed expenses basically stay the same from month to month (rent, utilities, and car payments). On the other hand, your variable expenses may be higher one month and lower the next. An example would be groceries or gas.
Imagine that you have been going along with your spending plan and you have been able to balance between your income and expenses. Suddenly you realize it’s tax season and you’re going to owe money this year. The only way you can pay your taxes is by choosing to pay one of your other bills late. Now you are behind in your payments and will be charged a late fee for the bill you could not pay.
One thing that can quickly ruin a budget is to forget. to include those expenses that don’t occur each and every month. Some big expenses like property taxes and insurance premiums might only come up once or twice a year. Others are seasonal, such as school clothes in the fall and holiday gifts in December.