Creating a Budget

Few people really enjoy creating—and perhaps sticking to—a budget, yet it is one exercise that everyone can benefit from completing. Furthermore, there are few things that feel as good and empowering as sticking to your financial plan.

At Richard Banks and Associates, we want to see you get free from the burden of debt and stressful collection calls. And as uninteresting as it may seem, one of the best ways we can guide you to freedom is to encourage you to create a budget every time you receive an income payment.

We know that creating a budget… if not boring, may be a little scary. Sometimes when we are in debt and feeling in over our heads, we may feel fear about what we will find when we look closely at our financial health. We can guarantee you however, that ignorance is not true bliss. Your road to freedom can only be traveled if you commit to look honestly and closely at the money coming in and out of your pocket.

So how do you create your budget?

It’s actually pretty simple.

Every time you receive a payment (income, bonus, tax refund, annuity, pension, etc.) you need to write it down. You need to figure out exactly how much money you are getting to fill in the first part of the equation. It’s okay, if the amount varies monthly, because you’ll create a budget monthly.

Next, you need to write down everything you spend. This includes all of your bills, incidentals and discretionary—or unnecessary spending.

Subtract your spending from your total income. If you are spending more than you make, or not saving as much as you need, you will need to work out a budget. This involves making cuts where you can, and lifestyle changes as you must.

Do you need help getting out of debt and stopping the harassing calls of collectors? Let us help you get your freedom back today!