Creating & Maintaining a Budget

Spring has arrived, and we all know what that means: Time to clean! Your “financial house” is no exception. Here are five important points to keep in mind whether you are creating a budget for the first time or simply updating your current plan:

Involve everyone impacted in the process. If you are married and share expenses, you must be on the same page with budgeting. Creating mutual awareness is key.
Keep it simple. If your budget isn’t easy to understand, let alone follow, you likely won’t stick to it. It’s important to be realistic and take a hard look at your habits.
Know your inflows and outflows. It is absolutely necessary to know how much you earn and what expenses you have. A calendar, spreadsheet, and calculator may come in handy!
Use the method that works for YOU. Some people find it helpful to use tracking tools or online budgeting platforms, such as Mint.com.
Your budget is not static. It’s a good idea to review your budget a few times every year or when your financial situation changes, like having a child or buying a home.

Tags: budgeting, budgeting tips, creating a budget, maintaining a budget