Welcome back! Today is Day 4: Budgeting Basics
Unfortunately, it’s not enough to want to achieve financial freedom without being a little strict with your money. But, being strict shouldn’t be seen as a negative thing or something that’s difficult to do. Actually, it’s quite easy. The only thing it requires is a successful budget and some self control.
That’s why today’s email is all about why it’s important to have a budget and how to create a successful one. Plus, I’ve included a free download to my budget template. Today we will review three categories: why have a budget, how to create a realistic budget, and a download to a free budget template.
Let’s do this!
Why Have a Budget
For one, financial experts and relatively anyone good with money swears by a budget. Budgets help ensure financial security, sets you up for savings, and gives you control to be flexible and make adjustments when needed.
If money is tight, if you are saving for a large purchase, or if you need to practice control in order to achieve that life of financial freedom, you need a budget.
How to Create a Realistic Budget
Budgets are only successful if they are realistic The fastest way to fail at budgeting is by setting an unrealistic goal for yourself. To help create a realistic and easy to follow budget, follow these steps. (Also, keep reading to the end of the email to download your free budget template.)
- Get your total monthly income (done in email 1).
- Figure out your monthly bills, debt, and additional expenses (done in email 1).
- Categorize your expenses into ‘major categories’ such as household and automotive expenses, and ‘minor categories’ such as subscriptions and entertainment.
- Make any necessary cuts to your spending.
- Total up all your expenses.
- Figure out your leftover monies.
- Example: If you make $1500 a month and have $800 in bills, your leftover money is $700.
- Decide how much you will set aside for savings (we will go more in-depth with savings in tomorrows email).
Free Budget Template
To make the budgeting process easy for you, I’ve created a template for you to download and use.
Download your free budget template HERE.
Follow the steps above to see how to complete the template. Remember, be realistic and honest about your budget. Don’t forget to download your budget template HERE!
I’m excited for you to create your budget. This is a huge step that will help you on your journey toward financial freedom. Tomorrow will be all about savings.
THE LIFE HUNT
My name is Alyssa Hunt and I help busy hustlers work toward their dreams of business success and financial freedom all while managing full-time jobs and daily distractions. Let’s do this!