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A life you love on a budget you can afford.

Here on TBM®, I provide you with simple, easy-to-follow solutions to help you budget your money, pay off debt, save more, and crush your financial goals. But more than that, I give you the tools to start doing the things that matter most to you, on a budget that actually works!

5 Critical Questions You Need to Ask Yourself Before Creating a Budget

February 26, 2018
Budget Tips

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If your budget doesn't make sense to you, you will never use it. Here are some questions to ask yourself before creating a budget.

There's a truth about budgeting that a lot of people choose to ignore.

Creating a budget simply to create one gives you the appearance that you have your financial life in order, but the hard truth is – if your budget doesn't make sense to you, you will never use it.

You will be surprised how many people make a budget purely for the quick satisfaction of just having something written down. It doesn't matter if the budget template they are using applies to their life, or if the numbers are even accurate. The idea of having a budget trumps reality.

Before sitting down to create a budget, it's important to answer a few questions first. Not only will it help with the creation of your budget, but it will ultimately give you the motivation for sticking to it. deneme bonusu veren siteler

Here are five critical question you should ask yourself before creating a budget.

WHAT GOALS DO YOU HAVE?

Ultimately, your money is your money. As long as your monthly expenses are taken care of, and you have more money coming in than going out, you are off to a good start. BUT, take it a step further than that.

Think long-term rather than short-term. Setting and having a budget isn't something that can just come and go as needed. The point of a budget is to help you stay on track, to help you with an end goal.

Think long and hard about what your end goal is with your budget. Keep in mind that your budget should be something obtainable and realistic for you. Don't set a huge lofty goal right out of the gate that may cause you frustration. Make sure to create baby steps along the way to reach your ultimate savings goal!

WHAT ARE YOUR “HAVE-TO” EXPENSES EVERY MONTH?

This can be the hard part, but you have to take a look at your current expenses that are “a must” to pay.

Write down all your loans, your bills, anything that you owe. Take a good look at those expenses. Then, write down an estimate of your variable expenses every month as well. These can include your utilities, groceries, and things such as that. Variable expenses are bills you know you have to pay, but they can vary a bit.

Once you have all those added together, you know that combined, those are your responsibilities every month. Your “must-pay without a doubt” expenses. These are key to creating a budget because these figures are factored in monthly to know then what is left over for use or saving.

IS EVERYONE ELSE ON BOARD WITH YOUR BUDGET?

If you have a family, it's crucial that the family is also aware and on-board with the budget.

You can't have a split house on this one and expect your budget to last long-term. The key to making your budget work is to communicate with the other members of your household. Explain the situation, let them understand the importance of having a budget, and ask them for their help and support in sticking to that budget.

You can't expect someone to fully accept a budget or a plan if they don't know the end goal as well, right? Communication is key.

HOW OFTEN WILL YOU REVIEW YOUR BUDGET?

Life happens, and our situations can change quickly.

Understand that setting a budget is essential, but it can also be altered if needed.Click To Tweet

If your income changes, if your expenses suddenly vary, then your budget needs to be reviewed and possible changed. Allow yourself that flexibility. Try not to make it a habit to alter your budget unless circumstances outside of your control give you reason to make changes, but if that is the case, just trust that it can be done.

WHAT HAPPENS IF YOUR BUDGET FAILS?

Understand that we all fail. You aren't alone in this thought.

If your budget happens to stumble one month, make a mental note and get back on track as quickly as possible. Don't lose track of your end goal because of a few little hiccups here and there.

You know that budgeting takes work, and with work comes highs and lows that accompany it. Take a deep breath and focus on the fact that you have had more highs, than lows, during your budgeting journey and focus on those wins.

Then, dust yourself off and get back on your budget track. Tomorrow is a new day to start again!

Creating a budget is a great way to keep you and your family on track towards financial freedom. By asking yourself the questions above, it can give you a good outline of things to think about when preparing to create, or alter, your current budget. Allow yourself the ability to set a budget that works for your household, and be positive about implementing that budget.

Read: How to Start a Budget When You Live Paycheck to Paycheck

What are some of the questions you ask yourself before creating your money plan? I want to read them in the comments below!

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Comments

  1. Ashley Burnside says

    February 26, 2018 at 12:50 pm

    This is a post that everyone starting out in family finance needs to read! I definitely struggled with communicating with my husband when first starting out in our budgeting adventures. It’s easy for me to understand the importance of a budget, but getting him on board and trying to get him to see the long-term goals was more of a challenge than the budget itself!
    Thanks for posting this!

    • kumiko Ehrmantraut says

      February 27, 2018 at 4:25 pm

      Thank you Ashley!

  2. Maunalei Patten says

    March 2, 2018 at 7:45 am

    I think people need to include “must have” purchases in their budgets. I tried really hard to cut out my morning coffee. I realized that I enjoy that too much, so I made it a category in my budget! I adjusted it and made cuts elsewhere.

  3. John says

    March 3, 2018 at 2:53 pm

    Very useful personal finance tips. I like the part where you have to find out if everyone is comfortable with it after creating one. Thanks for the insights. I cover some topics on personal finance on my blog http://www.businessandlifetips.com and I have learned some new tips from this article.

  4. pulsedaily says

    March 6, 2018 at 8:18 am

    If you include realistic cost in a flat income tax manner so it isn”t “someone else”s money which was likely the intent to keep control..both the flat income tax and balanced budget clauses were added with the pension clause.then I”m for that. Unfortunately true costs were hidden in so called balanced budgets..balanced by undercontribtions for the promises and borrowing. As a result there is no way to tax sufficiently to meet promises. Good luck. If it gets too bad I”m leaving and we will see how well they can pick dollars off the magic money tree.

Hello, I'm Kumiko, but everyone just calls me Miko. Welcome to my blog, The Budget Mom. I am an Accredited Financial Counselor® , and mom to a rambunctious boy. Come along with me as I strive to live a life I love on a budget that I can afford. Read more about me.

RECENT YOUTUBE VIDEO

The Budget Mom

The Budget Mom
Back on March 1st, I did an Instagram Live all about closing out your budget.

This step and my "Where Did My Money Go?" Worksheets are the two things I get the MOST questions about.

What do you do with your budget after the month is over, and you’re ready to begin a new month? Most people don’t realize it, but your spending throughout the month gives you some incredibly helpful information.

One of the first steps to creating and sticking to a realistic budget is tracking your expenses. Your spending is the underlying foundation for creating a budget and ensuring that your budgets in the future are successful.

If you are not aware of where your money is going, you can’t make the best decisions for your dollars.

➡️ HOW I TRACK MY SPENDING: https://bit.ly/3aIe89I
➡️ HOW TO USE A BUDGET CALENDAR: https://bit.ly/2IzF2Vj
➡️ FINDING YOUR WHY: https://bit.ly/3aJUryj
➡️ THE BUDGET MOM'S FINANCIAL FREEDOM STEPS: https://bit.ly/3cfJXsp
➡️ HOW TO GET STARTED WITH THE CASH ENVELOPE METHOD: https://bit.ly/2vQJaO5
➡️ HOW TO CREATE A PLAN OF ATTACK TO PAY OFF DEBT: https://bit.ly/2wDETxF
➡️ HOW TO CLOSE OUT YOUR BUDGET: https://bit.ly/2Uz0UUW

ABOUT ME

Kumiko Love is a single mom who empowers women everywhere to regain control of their financial lives. An Accredited Financial Counselor with over nine years of experience in the finance industry, she founded The Budget Mom, a community of millions of women on a path to financial fulfillment.

She's also the creator of the wildly popular Live Rich Planner® and Budget by Paycheck® Workbook. Love has been featured on Good Morning America, the Today show, CNN, CBS, ABC and in USA Today, US News, World Report, Huffington Post, Money Magazine, Parents Magazine, the Washington Post, and Real Simple. She lives in Spokane Valley, Washington.

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