Every person rich or poor should keep a budget of all their income and expenses daily. When you first create your budget you will see where you’re wasting money. Then you will be able to correct this waste. After you have kept track of your budget for a while, you will now be able to see what your financial future holds for you. Then you will start to take control of your own future, that’s your life.
There is software available to help you on this I personally like Quicken; it will take care of checking, savings, graphs and budgets. There is also free software available or you can just keep track of it on your computer in a word processor, spreadsheet format or on paper.
Keeping track of a budget takes a little getting used to. As time goes on you will not even realize your tracking it. When you do see what you’re spending per month, take note of what that cost per year. Little things add up over time. If your keeping track on a word processor, spreadsheet or on paper make graphs, it gives you a better visual of where you are going. If you’re using Quicken, it takes care of it all for you.
When you finally have your budget under control, you’re now setting aside spare money and you’re happier now, because your future looks brighter, because not knowing your financial future would be the scary part. Well, you’re not done with your budgeting yet. There’s another thing you need to do.Now you need to increase your yearly income by at least 3% because this is about the average inflation rate over time. We will now say that you love your current job and you would like to keep it. But it might not pay the bills in the future, or you’re not interested in going to college to increase your income. Then start looking at investments that will supplement your income over time with your spare money. The sooner you start on this the better the chance of building it up. Then you will soon see that instead of working for your money; have your money work for you.