August 23, 2009

Village Resolutions: Develop a Budget


I wonder why we only talk about resolutions at the beginning of each new year. Shouldn't resolutions be at the forefront of our thinking on a regular basis? Last week, we suggested that it is important for all villagers to set specific financial goals.

This week we remind all villagers about the importance of developing a budget. After all, the first step in developing a smart savings plan is to put together a budget. Make it simple. Begin by totaling all your income -- wages, salaries, dividends, interest and other regular income.

Next, list two types of expenses: Those which are fixed each month and those which vary.

Once you know how you're spending your money, take a look at those variable expenses that can be reduced or eliminated.

I hope that these reminders are helping you as much as they are helping me! Do you have a budget up & running right now?

3 comments:

CaroleMcDonnell said...

No, no budget, unfortunately. I definitely have to work at getting rid of this credit card debt. Thanks. -C

Blog Queen said...

I've been starting a budget since I opened my first checking account back in 1991..Thanks for the nudge to get started NOW....better late than never.

Villager said...

Carole and Blog Queen - I'm glad that this reminder is helpful. I need to do some serious repair of my credit history and having a budget is a positive first step. I have Quicken to track my small business, blogging and other income/expenses. I have the 2008 budget in it ... but, I don't do enough review or analysis of it.