We’re going to cut to the chase: The foundation for sound financial decisions is a budget.

If you don’t have one, you need one.

If you do have one, you need to review your budget every month to make sure your budget is working.

What IS a budget?

Your budget is your plan for your money. Simple as that! There are so many ways to budget, but really it breaks down to 3 things:

  1. Calculating how much money you have coming IN each month.
  2. Calculating how much money you have going OUT each month.
  3. Subtract the OUT amount from the IN amount. The goal is to have more coming in than going out (also known as a surplus)!

You can use our free budgeting template to get started now.

Why do I need a budget?

There are plenty of reasons to make a budget for your household, but there are 3 core reasons that we want to talk about.

  1. You’ll know if you’re spending money you don’t have! Remember, you want a SURPLUS (i.e. money left over) every month. Not only that, but you’ll quickly see if you’re spending too much on your WANTS and if you need to cut back.
  2. You can better prepare for emergencies… and have peace of mind. An emergency fund is essential for every household. Leave room in your budget to stash away a little extra for the unexpected.
  3. Easier saving for your financial goals! When you’re making your money plan, make sure to consider your dreams. Put away some money for your next vacation, a down payment, and your retirement. Don’t forget about your short-term goals either! You can start saving for a new couch NOW.

Get your copy of Wealthing Like Rabbits

Improve your financial well-being by reading Wealthing like Rabbits! We’ll give you a complimentary special edition when you sign up to be a member of The Village!

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