smart money strategies

Budgeting - Your Financial Game Plan

Budgeting helps you keep track of your finances and reach your goals. Which of these best describes a personal budget?

1. A complex plan that requires you to curb your spending
2. A formal plan that can’t be changed once it’s put in place
3. A written plan that shows how money will flow in and out of your personal accounts each month

“C” is correct. To set one up: Total up your monthly income. Then add up your monthly expenses. Also average in occasional expenses like car insurance or lab fees. Finally, subtract your expenses from your income. If your expenses exceed your income, find ways to increase your income or reduce what you spend. If money is left over, consider placing it in savings. Click here for more budget help.