Plan a Budget You Can Live With

Posted: September 22, 2009 in All Blogs, Buyers, General Information, Sellers

Planning a budget is essential in keeping your financial home afloat especially in these trying days. The following tips will help you in organizing your finances and keep track of your income and expenses.

1. Get all  your financial documents together such as your bank statements, your most recent utility bills, any investment certificates, etc.

2. Record your monthly total income.

3. Write down all of your expected monthly expenses and payments.

4. Divide your expenses into two categories. Your fixed expenses such as your mortgage, car payment etc. and your variable expenses which would include leisure activities and outings, purchases such as clothes, etc.

5. Total your monthly income and expenses. If your income exceeds your expenses, put excess money toward RRSP’s, investments, college funds, reducing your mortgage, etc.

6. If your expenses are higher than your income, make adjustments to variable expenses first. Look for ways to tighten the belt for a while like having coffee at home instead of drive through until the expenses are more under control.

7. Review your budget often to make sure that your are on track. After three months review your monthly expenses and try to stay within the best month’s budget.

I recommend you to read The Wealthy Barber:Everyone’s Common-Sense Guide to Becoming Financially Independent by David Chilton for a layman’s approach to finances. 

Still have questions? Visit the websites Questions to ask a Realtor and learn more about buying a home with NO MONEY DOWN! to find out how you can increase your wealth with Real Estate Investments.


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