A budget is a plan for spending money. Having a budget and reviewing it frequently, prevents us from over spending. Budgets can also help us identify cash flow problems and fix them.
This video walks you through setting up a monthly budget for a household.
Notice that the first category in this budget is Savings. The budget automatically sets a savings target. So every month, you set this amount aside as the first thing and deposit it into a savings account. Slowly, but surely keep building your savings and at the end of the year invest the amount in a Certificate of Deposit (CD) or stocks. As your savings grow, your financial security improves and so does your peace of mind!
expenseRegister makes budgeting easy. To create a budget, you can simply pick a template budget with canned expense categories and the budget setup wizard also helps you allocate budgeted amounts for these categories. Once you have set up a budget, you can review your budgeted and actual expenses to understand your spending and stay on track.
That's all it takes to set up a budget. Next let's see how to use this budget effectively to monitor spending, cut costs and build savings.
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