It doesn’t matter how much money you earn or how old you are. If you have an income and expenses, you can make a budget. Why do you need one?

  • To have money until the next paycheck
  • To know how much it costs you to live
  • To know what you spent your money on
  • To create realistic savings goals
  • To be able to adjust your expenses when there are some dramatic changes in your income

To do that, a credit union near me in Highlands Ranch offering Intro to Budgeting training suggests that a budget has to reflect your financial reality: income of any kind, savings, debts, and fixed and sporadic expenses.

credit union near me in Highlands Ranch

The easiest way is to start with the income, which is easier to quantify. Write down, in a column, anything that adds to your budget during a month: salaries, rent that you collect, allowances, etc.

In another column, write your fixed expenses: installment, rent, utilities, subscriptions, insurance, alimony, donations, the money you put in your savings accounts, etc.

Next, write down the necessary but flexible expenses: household supplies (food, hygiene products, medicines) and everything related to your lifestyle (clothes, going out, pocket money).

There is another category that people often ignore: debt. In addition to the installments, in a separate column, you should write your debts – loans, credit card limit exceeded, and loans from friends. This way, you can make a plan for returning them.

Now that you know how much you earn and spend watch for a few months how realistic your budget is, and you will soon have a real picture of your financial life.