Four Steps to Creating A Budget

0:00Four steps to creating a budget. This is a money minute from InCharge Education Foundation and MilitaryMoney.com. Creating a budget can sometimes seem overwhelming, but by following these four steps, you'll be on your way to meeting your financial goals. One, take a look at your long and short-term financial goals. Write these goals down and how much money it will take to accomplish each of them. Two, identify all of your income and expenses. Make a list of all sources of income and a list of all expenses for the month. Remember to include and prorate any expenses that occur out of pattern, such as home repairs or quarterly insurance payments. Three, add up the totals for your income and expenses, and remember to include contributions to the goals identified in step one. To succeed financially, income must be greater than expenses. Finally, it's important to monitor your budget and make changes as necessary. Goals and situations both change and your budget should be flexible to accommodate them. This money minute is made possible by InCharge debt solutions. Visit us online at www.incharge.org.