If you’re having financial troubles or living paycheck-to-paycheck and not sure how to fix it, budgeting can save you from a lot of undue stress.

So what exactly is a budget? It’s foreseeing your future income and expenses and planning accordingly. Personally, it’s setting up a set amount I plan to spend, so that my income can exceed my expenses. No one wants to live with a deficit.thS0QGVF2L

There are easy steps to budgeting, it just takes diligence.

  1. Start with a cash flow plan and begin tracking what your income is and your expenses in every category. This is a day to day task. WayPoints Financial Services has a great system to help you with this.
  2. Now you know the details of your monthly expenses. They may change but the last month you tracked is the best estimate to use. Take that and attempt to reduce spending where you can to “budget” yourself. Then see if it’s feasible in practice.
  3. The last two steps are generally all you need to consider for a budget. But for those of us looking for financial freedom, try to find ways to increase your income as well. While continuously finding more ways to cut and trim your budget even more.

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