Take Control of Spending
When you take control of your spending, you can make your money work for you by planning for monthly expenses and saving for important goals. Imagine the empowerment you can feel by maintaining a balanced budget with positive cash flow.
When you take control of your spending, you can make your money work for you by planning for monthly expenses and saving for important goals. Imagine the empowerment you can feel by maintaining a balanced budget with positive cash flow.
Building positive money habits around budgeting might be easier than you think. MSA’s Keys to Financial Health℠ identifies five main components of financial health. One of the most important steps to getting your finances in order is to gain control of your money. If you are not sure where to start, talk to a Money Coach or begin with these steps.
Develop Your Budget
- Estimate Your Current Income: Identify each of your income sources.
- Estimate Your Current Living Expenses: Categorize your expenses into essentials like housing, groceries, and utilities, as well as discretionary items like eating out or entertainment expenses.
- Create a Budget That Aligns With Your Goals: Prioritize your goals and determine how much you can contribute each month to savings goals.
Track Your Expenses & Income
- Review & Track Your Income: Document all sources of income.
- Track Your Regular Expenses: Some expenses are the same each month.
- Track Irregular Expenses: Identify and list all the irregular expenses you anticipate throughout the year, such as annual insurance premiums or holiday gifts.
- Identify Any Gaps or Surplus: Look for places where you have additional expenses that are unaccounted for or (hopefully) money left over at the end of the month.
Achieve Positive Monthly Cash Flow
- Learn to Stay on Budget: Start by practicing disciplined spending habits and avoiding impulsive purchases – or start budgeting fun money every month for those impulse purchases. Remember, you are in control!
- Develop a Habit of Reviewing Your Budget: Schedule a consistent time each week to review your budget, track your expenses, and make any necessary adjustments.
- Learn How to Overcome a Shortage: Identify areas where you can reduce expenses or find ways to increase your income.
Taking control of your spending can lead to feeling in control of your financial decisions overall. And achieving a balanced budget with positive cash flow is fundamental to gaining financial stability. Are you ready to get started? Want additional support along the way? Talk with a Money Coach today.
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