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How To: Start a Budget

Get your spending under control for good by creating a budget.  Here are the top things to know to get you started.


Budgets are necessary.  They are a practical way to get a grip on your spending and to make sure your money is being used the way you want it to be used.

Creating a budget requires these three step
s:
1. Identify how you're spending money now.
2. Evaluate your current spending and set goals that take into account long term financial objectives.
3. Track your spending to make sure it stays within those guidelines.

Use software to save yourself a headache.  Personal finance programs like Quicken or Microsoft Money have built in budget making tools to help you get started.

Watch out for cash leakage.  If you find your money vanishing because of ATM transactions, keep better records.  In general, if you're running there more than once a week it's probably time to start tracking where that cash is going.

Tithe yourself.  Try not to spend more than 90% of your income.  That way the other 10% is left to save for big picture items.

Don't count on windfalls.  Accurately project the money you'll be living on.  Don't include dollars you may never receive like end of the year bonuses or tax refunds. 

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