Personal Budget Explanation
Personal Budget Explanation
1. Personal financial goals:
It is such a good idea to get financial goals written out right in front of me, (not just financial goals, but any goals!). I think the process serves as a good reminder of what needs to be accomplished and where priorities should be. I have checked three off the list, and it probably would have taken me longer had I not written these out! I always forget how good it feels to “check” things off.
2. Develop financial plans and strategies to achieve goals:
After creating the personal financial statements, I was able to see where all my money disappears to every month! These are important in developing a realistic financial plan that helps me figure out how to better manage money and save to better prepare for the future (which is extremely important). My money situation is put into better perspective in terms of how much I am spending on nonsense things!
Instead to spending impulsively on unimportant items, I should be saving for long term goals or emergencies. 3. Implement financial plans and strategies:
I realize that I need to make realistic plans (and goals) and work with these on a regular basis! If not I could end up off track and set myself up for failure. By using the statements regularly, I can analyze them and they will let me know where I stand financially, which definitely helps when unexpected situations arise or when I wonder where all my money is or went to. .
4. Periodically develop and implement budgets to monitor and control progress toward goals:
Putting together a cash budget is crucial to monitor and control spending. This helps reduce impulsive spending which helps save more, which allows for more saving. Like I said above, analyzing financial statements tells me where I stand financially, and can tell me how I’m doing on working towards my goals. The income and expense statement helps me compare actual results with budgeted figures to make sure spending is under
1. Personal financial goals:
It is such a good idea to get financial goals written out right in front of me, (not just financial goals, but any goals!). I think the process serves as a good reminder of what needs to be accomplished and where priorities should be. I have checked three off the list, and it probably would have taken me longer had I not written these out! I always forget how good it feels to “check” things off.
2. Develop financial plans and strategies to achieve goals:
After creating the personal financial statements, I was able to see where all my money disappears to every month! These are important in developing a realistic financial plan that helps me figure out how to better manage money and save to better prepare for the future (which is extremely important). My money situation is put into better perspective in terms of how much I am spending on nonsense things!
Instead to spending impulsively on unimportant items, I should be saving for long term goals or emergencies. 3. Implement financial plans and strategies:
I realize that I need to make realistic plans (and goals) and work with these on a regular basis! If not I could end up off track and set myself up for failure. By using the statements regularly, I can analyze them and they will let me know where I stand financially, which definitely helps when unexpected situations arise or when I wonder where all my money is or went to. .
4. Periodically develop and implement budgets to monitor and control progress toward goals:
Putting together a cash budget is crucial to monitor and control spending. This helps reduce impulsive spending which helps save more, which allows for more saving. Like I said above, analyzing financial statements tells me where I stand financially, and can tell me how I’m doing on working towards my goals. The income and expense statement helps me compare actual results with budgeted figures to make sure spending is under