budgeting works, give every $ a purpose!

A budget is simply a plan for your money.  In order for the budget to be an effective tool, it must be:

• Balanced.  Expenses less than income
• Reviewed throughout the month.  Used as guide
• A team effort with both spouses involved.  Communication

By reviewing your past spending over last 90 days, the household expenses can be categorized and spending amounts can be evaluated against recommended spending guidelines.  If expenses are more than income, ideas can be discussed to reduced expenses or increase income.  Live within your means!

A good initial goal is to create an Emergency Fund of $1,000 in a separate savings account.  This is the first step towards Financial Freedom.  An Emergency Fund allows families to step through a major car repair or medical bill without having to put it in credit cards and pay interest fees for months.   Afterwards, the fund is rebuilt by budgeting expenses below income to replenish the fund.

The good news is that there are several tools available to help households track spending against a monthly budget.  Check out the Mint app, link provided below.  It is free of charge and can be reviewed on desktop or smartphone through the month.