Once you have your fresh budget created you need to actually implement the budget by reaching or exceeding your savings, spending, and investment goals. Here are some important things to consider:
1. Follow up on expenses.
Make sure they are accurate. Did you forget to add your monthly haircut or your personal care products to your budget? Perhaps you forgot to include your monthly gym membership? You might have spent more than planned so you'll either need to save less or spend less in other areas. Make changes to your budget to reflect reality THEN change reality by reducing what you spend. As you modify your spending habits, you'll see the change on your spreadsheet where you register expenses and income.2. Review your goals
Once a month, reconsider your goals, their priority, and timeframe. Are you saving enough? Are your investments earning as much as you predicted? You might have to increase savings or change the start date for your new projects. However without your budget you wouldn't have realized it.3. Have circumstances changed?
Even a perfect spending plan will frequently change because circumstances change. If you lose your job, get a second job, get or lose a roommate, or decide to buy a new car, guess what? your budget will have to be updated. You are responsible for your personal finances regardless of whose fault it is.
4. Did you pay yourself first?
If you put your expenses before saving and investing you might discover that you didn't save as much as was in your budget. Really of all your spending plan, your savings and investments are the most crucial to get ahead financially. Since you didn't meet your goals, check to see what the problem was and next month deposit the percent of income you have budgeted into your savings and investment accounts as soon as you get paid! Instead of saving and investing with the left over money, use the left over money for non-essentials.
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