Since it is the new year, I thought it would be best to talk about something new on my blog and that is budgeting. Budgeting in regards to finances, can sound intimidating and possibly unrealistic to think of given current events. However, creating a personal budget can offer a sense of discipline and give you more flexibility in future endeavors.

The best budget management practices start off by listing current activities and acknowledging areas that perhaps were more relaxed than others. Sorting out essential items from things that are not mandatory, will help set up what is truly needed in your life. For instance, top of lists would include: housing, food, and clothing costs; whereas entertainment would likely be at the bottom of list. The listings are an individual preference, however it is important to sort and assess where your finances are going towards.

Once a list is set up, it is best to thoroughly run each line by value and create a max amount that can be spent for a period of time. The values need to be well organized and realistic to obtain achievement in upholding a budget. The values also need to include room to grow, as things like gas prices and seasonal items often fluctuate in value. Lastly, there also needs to be room for emergency, as tires on a car or brakes seem to need to be fixed at the most curious times.

When you have your values to each expense priced out, give yourself on the pat on the back, as you are done! Just kidding, this is only the beginning, you actually have to keep up with this budget and put it into action. Most of the time, it is simply sorting that gets people to stop. So, as soon as your done with your list, get started with your action plan on how you will keep the budget active in your day to day life. Again, being realistic about the whole thing is the only way you can be successful in upholding a budget.

Being consistent for at least a year would give you the best viewpoint as to where you are in your finances. A year would also give you insight into what emergency you tend to encounter and where you tend to spend the most money. If you could uphold a little discipline towards your yearly budget, you might find that you are able to save money for that special trip you always talk about.

Budgeting seems like a challenging and unrealistic thing to do. However, like everything in life, it doesn’t have to be and it can be something you are capable of doing. With a change in mindset and some will power to stick to a plan, anyone can turn their finances around. When you are able to budget the things that matter, you are then able to find ways to spend more time and effort into things you could only dream to. This isn’t coming from an export, but rather someone who recognizes life is better with a little budgeting from time to time.

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