HOW TO CREATE AND MAINTAIN A BUDGET!

Budgeting lies at the foundation of every financial plan. It doesn’t matter if you’re living paycheck to paycheck or earning six-figures a year, you need to know where your money is going if you want to have a handle on your finances. Unlike what you might believe, budgeting isn’t all about restricting what you spend money on and cutting out all the fun in your life. It’s really about understanding how much money you have, where it goes, and then planning how to best allocate those funds.

Creating a budget may not sound like the most exciting thing in the world to do, but it is vital in keeping your financial house in order. Before you begin to create your budget it is important to realize that in order to be successful you have to provide as much detailed information as possible. Ultimately, the end result will be able to show where your money is coming from, how much is there and where it is all going.

1.  Gather every financial statement you can.

2.  Record all of your sources of income.

3.  Create a list of monthly expenses.

4.  Break expenses into two categories: fixed and variable.

5.  Total your monthly income and monthly expenses.

6.  Make adjustments to expenses.

7.  Review your budget monthly with your accountant, financial advisor, or PREMIER CONCIERGE.  We can help you create and maintain your budget!  In this economy, you have no choice but to follow a BUDGET!