The budget is a plan for projecting income, expenses and other items, and their distribution with a view to the future.
It is suggested to prepare it monthly, you will have better results. Its objectives are:
Effectively organize income and distribute it better.
Exercise greater and better control over expenses.
Know the level of debt and savings.
Knowing which expenses we spend the most money on.
The budget is of great help for:
Prioritize expenses.
Reduce or eliminate debts.
Set aside some amount for savings.
Have a fund for future emergencies.
Knowing where your money goes.
Living within our means, with the peace of mind that this entails.
Make predictions for the future.
Keep track and control so we don't go off track.
Sample budget (feel free to create your own format):
Financial health
Income > Expenses = Healthy family finances (Income greater than expenses)
Income < Expenses = Bad family finances (Income less than expenses)
Income = Expenses = Bad or endangered family finances (Income equals expenses)
With this we conclude our Financial Education series, which was made available to you with the purpose of being a useful tool for anyone who is concerned and eager to learn how to make their life more bearable in the financial aspect of their home.
Source: http://www.finanzasparatodos.es
Comments