How to Draw a Personal Budget that Works

How to Draw a Personal Budget that Works
by: Abdallah Khamis Abdallah



Many people spend their little income haphazardly without any planning
and end up getting broke before month-end. They then borrow to make ends
meet and end up with more problems that they fail to repay their debts
promptly.

However, this is not a prudent way of managing your personal financial
affairs. Planning your personal financial affairs through prioritization
of needs and budgeting income and expenses is the best way to achieving
success in managing your financial affairs.

It is important first to assess your financial needs in the short, medium
and long term. What are your financial objectives? What do you want to
achieve in the course of time? Do you have any targets? What is your
short, medium and long term needs? List all of them down.

Next categorize income and expenses on a monthly basis. Then prioritize
expenses into most important, important and most important. You can use
any other weighting or prioritization formula that works best for you.

After this assess costs based on consumption per month. Put figures to
the expense items. Then write down your income sources and the amount you
earn per month from them. List the income on the left and the expenses on
the right. Add up income amounts against expense amounts and find the
difference to determine surplus or deficit.

Once you have added and reduced items and figures several times and you
are finally satisfied with the results, type your figures on a computer
spreadsheet or word processor table and save it. You may also print it
and file it for regular reference.

To make it work successfully for you, you must vow to stick to the
budget. Any deviation must be absolutely necessary and funds should be
made available separately to meet the extra expenditure. Where no funds
are available, some cutbacks or borrowing from other expense votes. You
should ensure that you refund any funds borrowed from any expense votes
to enable the votes to be expended.

To be frank, most people would want to spend more and more irrespective
of their financial ability. However, arbitrary unbudgeted spending may be
hazardous to your financial health.

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About The Author

Abdallah Khamis Abdallah is a freelance copywriter and ghostwriter. To
learn more about how you and your business can benefit from viral and
credibility marketing solutions visit his website at:
http://www.qualitywritingsolutions.com.
quantumpro@lycos.com