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.
• Charity
• Existing obligations
• Entertainment
• Memberships/subscriptions
• Vacation

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.