Give your budget the make over it needs

Rework your budget for the New Year and obtain financial freedom.

14:40 20 February 2014

The first quarter of the year is a great time to start dealing with your financial issues while analysing your budget carefully. It is the perfect time of year to deal with making changes. You never know what might come up during the year. Having a solid financial plan and a good budget can work in your favour. In order to work with your finances, there are a few things to keep in mind. 

 

• Averages – Working with averages can a big help with dealing with creating a new budget. Expenses change. Your power bill will vary depending on the season and your requirements. The best way to deal with this when creating a financial plan is to deal with the average amount of your bill over the year. Take the entire amount you spend over the year and then average it by 12 months. Use this as the amount you place in your perspective budget. 

 

• Debt payoff – One of the major financial goals you should have is debt pay off. This is where you focus on eliminating your debts. Start with small debts that you can pay off a little at a time. Do what you can to remove money from excesses and put it into this plan. This will help you make progress and keep you from falling behind. This should be a large part of any budget and the plan you come up with should fit comfortably within it. 

 

• Savings contributions – this should be a part of any budget and if possible it should be automated. This means that you automatically put so much away every month. This allows you to save money to put towards emergency funds or to pay off larger bills to boot. 

 

Stop living from day to day. Try to save for your future. Put a budget and follow it religiously. The control of your finances will fall into your hands.