September 14

Using a Budget

The foremost tool for managing money is a budget. A budget is a simple plan and forecast of where cash flow will be sent. Following a budget is the most powerful money habit anyone can have.

Naturally, everyone has expenses for living. Taxes must be paid if not from withholding at work then in some other way.

Married couples will achieve the best results if both parties are agreed upon the near and long term plans for their finances. One popular system for couples is to have three accounts: Ours, His, and Hers.

To get started, keep track of expenses as they are paid. A good way to do this is to use a bank that permits each item to be assigned to an expense category. An excellent online bank for this is USAA.com.

Adding up each category at the end of the month will show a pattern. If the pattern is agreeable, fine. If not, this is the time to make adjustments and decide where to make changes in spending targets.

Enormous advantage is gained by choosing as early in life as possible to save part of every dollar earned, after taxes and before expenses. Pay yourself first. Then allow compound interest to give birth to more dollars as they are earned on your savings dollars.

Begin now. These simple steps are your path to Wealth Without Worry.


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