Using A Saving Plan To Enhance Your Financial Future

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Using A Saving Plan To Enhance Your Financial
Future
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• The first step in beginning financial security is
  creating a personal budget. In order to plan a
  personal budget you have to know how much you
  possess and how much you owe. On the asset side
  of your life how much money do you have in your
  wallet? How much savings do you have in the bank?
  Do you own your own home or do you rent or do you
  have a mortgage on it? Do you own your car or do
  you have a loan on it?
• These are all the initial items for consideration
  for building a personal budget. On the liability
  side you need to list the monthly car payment,
  the monthly rent or mortgage payment, utilities,
  charge accounts or credit card payments and other
  maintenance and upkeep expenses. You finished
  your basic homework now let's create a monthly
  personal budget.

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• A personal monthly budget is used to estimate
  what you earn and what you pay. It gives you an
  alert if you can plan in advance what each month
  you will earn in salary, dividend earnings and it
  will allow you to determine how much you will
  owe.
• This is how I would set one up.
• At the top of the list place the following
  categories on the left side of the sheet,
  projected monthly income, actual monthly income
  and on the right side place the categories,
  projected balance, actual balance, and
  difference, these will be handled after you total
  your debts. Under projected monthly income list
  the following subcategories, income1, extra
  income, and total monthly income.
• Under the major category of actual monthly income
  list the following subcategories income1, extra
  income, and total monthly income. Beneath this
  header place the following categories, housing,
  transportation, insurance, food, entertainment,
  loans, taxes, savings or investments, gifts and
  donations and legal. Each of these categories
  will have projected cost, actual cost and
  difference columns added to each row within these
  major expense divisions. Each beginning of the
  month you must predict the next month's expenses,
  during the month as you pay those expenses enter
  that amount into the actual cost column. The end
  of the month you should enter the difference
  between the projected and actual cost into the
  difference column.

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• You remember those categories on the right side,
  projected balance, actual monthly income and
  difference? They are calculated by subtracting
  the total expenses from each balance. The
  difference is obtained from subtracting the
  actual from the projected. At the bottom the
  totals of the projected costs, actual costs and
  difference of the two are given. The maintenance
  of the personal budget as well as the
  decipherment of the spending trends should
  provide you with an invaluable tool to speed you
  towards financial success.
• A personal budget set up in this manner can
  simplify the process of setting a certain amount
  of ones' salary or profits into a savings plan
  which is composed of simple interest savings,
  mutual fund investments for your retirement and a
  long range acquisition plan for real estate
  investment.
• Article Source http//EzineArticles.com/284710

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