What Is A Budget Simply put, a budget is a spending plan. It details how much you earn, how much you spend, and how much is left over. If you have any money left over, then you have a budget surplus. If you don’t, you have a budget deficit. If you happen to fall into the budget deficit category, then you have to cut non-essential purchases completely out of your budget. Generally, living and leisure expenses can be modified slightly to fix the problem.
Why Start A Budget
Statistics show that the average American spends 10% more than they earn. This means that if you have an annual household income of $50,000, then on average you would be spending $5000 more than you earn. The only way to combat this cycle of overspending is by establishing a realistic household budget and stick to it.
What Are The Benefits of Budget
Maintaining a budget allows both individuals and families to become debt free, save money, track spending patterns, and achieve financial goals. Whether you are looking to pay for your next car in cash or funding your child’s college education, establishing a budget is a sure way of doing it.
Why Some People Fail at Budgeting
Many people fail to live within their budget when they feel that it is too restrictive or too difficult to manage. Therefore, it is a good idea to allow room for leisure entertainment and some discretionary spending. This way, you stick with your budget and it becomes a habit without feeling miserly.
How To Start A Budget
Follow these quick and easy steps and you are well on your way to becoming a master at budgeting.
1. Set your goals. Why do you need to budget? Saving for a new car, vacation, or nest egg?
2. Determine your cash flow. How much is coming in every week, month, year? Write it down, or enter your information into a budgeting software program, such as Budget Forecaster by Strativia.
3. Determine your expenses. Where is your money going? Again, write it down.
4. What the verdict? Do you have a budget surplus or budget deficit?
5. Maintain or modify your plan. Depending on your results, you should either stay the course, or change your course to achieve your financial goals.
There you have, Budgeting 101. It’s not hard. The difficult part of budgeting is actually starting and sticking to it. If you start today, you will be financially free tomorrow.
Kenneth Kelly
http://www.articlesbase.com/finance-articles/establishing-a-budget-is-the-right-thing-to-do-136097.html
Question for women going through a divorce?
I am trying to process all the garbage that’s gone on during my divorce.
I discovered my wife was having an affair, after we had gone through the first rough patch in our marriage.
Basically, we had bought our first home and were house poor, so we needed to watch our budget. So we agreed that we’d basically work for about 18 months, let the budget re-adjust and in the meantime, just focus on getting ahead.
This is exactly what I did, minded every penny. Just did the work/home thing as much as possible. During this time, we started trying for a baby, got a new puppy and then sold that house and bought another one closer to her family. So again, we are minding the budget. During this time, I also have two divorces going on in my family, which certainly takes it’s toll on you.
Now, a lot of my social life revolved around skiing, which is a very expensive sport. So I gave that up for like 3 years so we can get ahead.
I discovered my wife is was having an affair with a married, wealthier man she worked with.
Here I am trying to build a strong economic foundation for us and do the right thing. My wife confronts me and tells me how:
I failed to socially establish myself.
That she had not been sexually attracted to me in a while.
she’s lost all respect for me…
So ladies, what more can you ask of a man?
As an fyi, we sold the hosue and got out before teh market crashed. She moved a few blocks away from the married co-worker and apparently that dies on the vine. She’s had to get an apartment with a roommate as she can longer afford to live alone… I’ve heard she’s been selling off the jewelry and furniture from our marriage just to come up with money these days.
Risa… No excuse for cheating. that;’s when you sit down and talk with your spouse.
she has major issues… her problem was herself. Not you, you probably could be the greatest thing next to sliced bread and she still would have screwed around. Some people are like that unfortunetly. My ex, had issues. My fiancee now has a ex like that too.
Stop beating your self up for it. By the sounds of it you were doing what most women would have wanted a fully vested partner that tried! So feel better about your self based on that. Feel free to add me and email me- I know the best thing is to just find friends that can help you through this.
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Be happy you got rid of the tramp… life gets better dude… it really does.
cheers to moving your life forward without her in it.
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I am not personally going through a divorce, but I just wanted to say how sorry I am for what you are going through. One of my good friends just went through the same thing with her hubby–she supported him while he went to law school, she got pregnant, he graduated from law school and told her it was her turn to do what she wanted now that he could support the family. Then he dumped her for someone younger, prettier, and richer. I can’t imagine anything more devastating.
Just know that you are worth sooooo much more. You will find someone out there who will appreciate everything you have to offer. Hang in there.
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I think you did everything right. Your wife acted like a tramp. Leave her in your wake.
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You’re doing the right thing but you’re also forgetting about the other side of a marriage/relationship…sexual pleasure. You didn’t mention anything about that. Women have their sexual peak later in life and it only gets worse is what I’ve been told. And like me, I want anything of intimacy at anytime, even if it’s a little. Just something to know my husband still WANTS me. Times like these you have to work hard to get through it and sacrifice for your personal goals but it always seems that one spouse forgets about the touchy-lovey things that the other one needs…sometimes constantly.
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speaking from personal experience