Posted on: 17th Oct, 2006 10:05 pm
Many people talk about proper budgeting and against that you will find so many comments for framing the budget.
I just wanted to know that what is a realistic budget aka - what kind of budget should a common person set for himself that is easily achieveable.
thanks
I just wanted to know that what is a realistic budget aka - what kind of budget should a common person set for himself that is easily achieveable.
thanks
Hi Moley,
That's a very good question that you have asked. And believe me its very difficult to set a realistic budget.
The first and the most important thing that is required for a realistic budget is honesty. You need to be honest to yourself.
When you start budgeting, it's very important that you set up your financial goals. This can be anything, getting out of debt, saving for children education or saving for your own retirement.
Once you know your financial goals, get a sheet of paper and list all your income on one side and all your expenses on the other side. After you do this you will exactly know where your money goes and this way you can down on unwanted expenses.
And if you are able to practice this on a regular basis, you will definitely see good results.
Thanks,
Allan
That's a very good question that you have asked. And believe me its very difficult to set a realistic budget.
The first and the most important thing that is required for a realistic budget is honesty. You need to be honest to yourself.
When you start budgeting, it's very important that you set up your financial goals. This can be anything, getting out of debt, saving for children education or saving for your own retirement.
Once you know your financial goals, get a sheet of paper and list all your income on one side and all your expenses on the other side. After you do this you will exactly know where your money goes and this way you can down on unwanted expenses.
And if you are able to practice this on a regular basis, you will definitely see good results.
Thanks,
Allan
Hi Moley,
Welcome to MortgageFit Forums,
Allan has already mentioned some very good points. One point that I would like to add is that never forget your debts.
For a successful and realistic budget its important that you have some idea about your existing debts. Debts that still need to be paid off. Try to go for the maximum payment that you can afford in a month with all other necessities. Start off with a loan or credit card that has maximum interest rate on it.
You will not be able to start working freely on other financial goals if you are not debt free.
Please feel free to ask if you have any more questions.
Thanks,
Jerry
Welcome to MortgageFit Forums,
Allan has already mentioned some very good points. One point that I would like to add is that never forget your debts.
For a successful and realistic budget its important that you have some idea about your existing debts. Debts that still need to be paid off. Try to go for the maximum payment that you can afford in a month with all other necessities. Start off with a loan or credit card that has maximum interest rate on it.
You will not be able to start working freely on other financial goals if you are not debt free.
Please feel free to ask if you have any more questions.
Thanks,
Jerry
Thanks for the suggestion....