Budgeting & Its Long Term Benefits

Budgeting AND ITS LONG TERM BENEFITS Finance created by http://www.finance27.co.za/ Fixed Income Vs Variable Income Before You Begin The very basic thing your budget will need before you begin is clear figures detailing your income and your Fixed income will be those costs over which you have little or no control . Next, it's necessary to dig a little deeper, and look at variable income and where expenses. you can cut back If expenses are greater... If income is greater... Then you are spending less than you earn, and are already in a good position should you decide you want to stick to a budget over future months. Some changes will need to be made to your overall expenditure, including a review of your smaller expenses: are you spending money things on need or things you want? Removing drains on your finances The benefits of budgeting Think about unnecessar pressures on your income, or expenses that are not essential, including: Setting a budget can have the following benefits. Aligns priorities - Helps embed new habits. - An expensive phone tariff. - Reduces stress and worry. - Are you on the right insurance policy? - Creates a financial margin (essential for debt repayments) - Could you be saving money on utility bills? Source : http://financialplan.about.com/od/budgetingyourmoney/ht/createbud get.htm 2015 2014