TC: BUILD A PERSONAL BUDGET
The well-being of small business is closely related to that of the business owner. Nowhere is that more evident than in the area of financial well-being. Some small business owners develop budgets for their business operation, but I find that very few of them have taken into consideration the family budget.
Your challenge for this week is to create a family budget for the next year. I recommend a simple software that you can track all your income and expenses, for example, Quick Books.
A good place to start is by looking at your income and expenses for last month which will give you a starting point for future planning. The following general categories should be considered when developing your actual expenses.
- Savings (emergency, retirement, kids’ education, etc. )
- Home Expenses include not only the normal expenses, but include reserves for major replacements, roof, heating, etc.
- Daily living to include clothes, dry cleaning, dining out, etc.
- All expenses related to transportation, car purchase and repairs, gas, etc.
- Health costs, doctor, dentist, medicine, health club etc.
- Insurance – auto, health life, etc.
- Existing obligations
If you need help, please send me a request for budget forms we created and we will e-mail them to you.
“A budget is telling your money where to go instead of wondering where it went.” Dave Ramsey
Tips & Advice by Nick Petra – CFP, Mentor, and Founder of BizQuack and Strategic Duck.
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