Friday, September 17, 2010

Try to set up a financial budget to fulfill your dreams

Everyone works hard to earn some money. If you are spending much more then your income then you may face problem in future. If you don't want to face problem in future then it is advisable to prepare a budget to manage your personal finance.

Steps to make a budget
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I will advice to follow certain steps which will help you in making a budget for managing personal finance.


1) Calculate your income: Note down all types of incomes such as monthly salary, bonus and also include the earning on investment.
2) Determine the Expenses: You have to calculate the total monthly expenses and also categories according to the types such as

*Home- Try to keep a fixed amount towards your mortgage payment or rent
* Food-Keep a fixed amount for grocery items.
*Tax-Calculate the total amount of money paying towards tax.
*Medical- Keep a certain amount for your medical bill.
* Utilities-keep some amount for utility bills such as telephone bill, Internet and water.

After calculating all expenses, try to keep some amount for your future saving.

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