This is Your First Step to a Successful Money Management Plan

Money Management Series

1. This is Your First Step to a Successful Money Management Plan
2. Knowing Your FICO Score is a Key Component to a Solid Financial Plan
3. Evaluate Your Financial Situation and Make Changes Where Needed

Developing a budget is your first step to a successful money management plan.

Just as a solid foundation is critical to building a structurally sound house, a budget, and the information it provides, is crucial to developing a successful financial plan.

Without knowing how much money you have coming in and to where – and in what amounts – your money is being spent, you’ll never be able to get a grasp on your financial situation.

Luckily, a budget only takes a bit of effort to set up, after which it is fairly easy to manage…at least from a technical, input the numbers, standpoint.

The psychological aspect of delaying gratification, determining needs versus wants and possibly eliminating expenditures altogether is another story, and one you as an individual will have to work through as you develop your money management plan.

But, without the budget numbers, you won’t be able to see where changes may need to be made and set the necessary goals.

So, without further adieu, here’s what you need to set up your budget and begin your first step to a successful money management plan.

The Essential Money Management Tool

A monthly budget, where your income and expenses are listed, is essential for knowing where you are financially.

And while it does take some effort to set up initially, once it’s done, it only takes tweaking when income or expenses change to keep an eye on your financial situation.

Here’s a basic spreadsheet that can be used as a template.

[embeddoc url=”https://savingsbeagle.com/wp-content/uploads/2019/04/Monthly-Budget.xlsx” download=”all” viewer=”microsoft”]

As long as you have access to Microsoft Excel, you can download this spreadsheet to use as you wish. The formulas are set up to add the income numbers, the expense numbers and calculate your net cash situation.

Once you have a handle on your financial situation, you can move on to more advanced financial topics such as saving, investing, etc.

Topics that we’ll touch on in future articles…or that can be found, indirectly, in many of our older posts.

But first, you need the foundation – a budget – from which to build.

So download the budget template, gather your bills and input the numbers. The resulting bottom-line number will let you know where you are and be a guide for where changes may need to occur.

Knowledge is the key to success in any endeavor. And a budget gives you just that when finances are of interest.