What Is The Purpose of a Budget?
“A budget tells your money what to do instead of wondering where your money went each month.”
Houston Businesses Must Have A Budget
All businesses in Houston must have a budget and cash flow analysis to gage how the business is performing.
Credit Repair Houston Clients Should Treat The Household Like A Business
Houston households should apply the same procedures they do in business, when it comes to running their households expenses.
Figuring Out Monthly Expenses
Take the time to sit down and determine how much money, after taxes, comes into the household. How much is needed to pay for the mortgage, utilities, car, food, cloths, gas, credit cards and any additional monthly expenses?
Deducting Monthly Expenses From The Total Amount Of Monthly Income
After totaling the monthly expenses , you must deduct this figure from the total amount of household income. The balance is what you have remaing after all monthly expenses are paid.
Credit Repair Clients In Houston May Be “Shocked” to Discover What Is Spent Monthly
The number may be a real “shocker”. This is a necessary step in order to figure out your monthly household budget.
Spending More Than You Make?
Spending more than comes in, can lead to major financial difficulties.
Trimming The Fat
If you are spending more that you make, it may be time to cut some expenses out of the budget. Take a look at the monthly expenses and figure out what expenses can be eliminated.
Downsizing May Be the Key
If you are unable to eliminate anything from your monthly budget, it may be time to downsize. You may consider moving into a less expensive home or trading in your current vehicle for a less expensive vehicle with great gas mileage.
Time To Obtain A 2nd Job
If you are unable to downsize, it may be time to seek part time employment. Bringing in additional income will help with the bills. If you budget correctly, your part time employment will be temporary.
You Should Not Feel Alone
We all have been through a major financial crisis the past five years. We must do our best to move forward without looking back. Creating your “family budget” is a positive step in the right direction.
Self Employed Family Budgets
Family Budgets for the self employed can be done.
“How can I come up with a family budget, if my income coming in is never the same each month?”
The best way for credit repair clients in Houston to handle a self employed family budget, go back through the the last 12 months of bank statements to determine what your income was in that time period. Now average the 12 months to see what the monthly income is. Use the steps above to complete the process in understanding your finances.
Evaluating And Forcasting Your Annual Income
You will notice that some months are better than others. You should plan your expenses accordingly. Try not to over spend on the months when income is low! Make an effort to get ahead of your bills when income is high.
Family Budget Killers
We all have expenses that come up that are not included in our usual budgets. For example, vehicle repairs, healthcare related expenses and, yes,” the big one” is, vacations.
Planning For Those Unexpected Expenses, Insurance
There are ways to cover unexpected expenses. Obtaining auto repair insurance for car repairs is an expense that can be budgeted monthly, eliminating surprisingly high auto repairs. Medical insurance for your healthcare needs is also a must, in the family budget.
Vacations seem to be the one expense that is never covered properly. It’s hard to keep up with your neighbors, “the Jones’s” on where they travel and how much they spend on vacation. It is important that you focus on your own family budget.
Budgeting The Family Vacation
After making a decision on your family vacation spot, you must figure out what it is going to cost. Make sure you save the money in advance each month. Adding this expense into your monthly budget is recommended. The goal is to pay off the vacation before you leave.
Vacation Key to Success
Another key to success while on vacation is to come up with a spending budget while you are traveling. Credit repair clients in Houston should stay within your means and control spending.
Vacation + 10% Interest = Stressful Trip
Do not charge the vacation last minute. Paying interest on the vacation when you get back it will make it difficult to ever pay it off. Vacations are not fun when your stressing out the entire time, thinking about the bill you will receive from your credit card company when you return home.