- Creating a solid budget will help you build financial health.
- “A budget is what your money is doing,” said Tiffany Arish, also known as Budgetnista.
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Creating a solid budget will help you build financial health.
“A budget is what your money is doing,” Tiffany Arish, also known as Budgetnista, told CNBC on Women and Wealth. live stream.
“Money is the foundation on which you build your financial home. You need to understand what your money is doing,” says John, personal finance educator and author of “Get Good with Money.” says one Alishe.
By examining your spending and setting a budget, you may be able to find cash to build other financial safety nets, such as an emergency savings fund or retirement fund.
is a certified financial planner, Y generation plan Located in Austin, Texas.
It may be a good idea to think about your budget from an annual perspective. Daigle, who is also a member of CNBC Financial Advisors, said major new expenses, such as a car or home, or the occasional emergency can affect your monthly expenses.
1. Make a list of your expenses. The first thing to do is write a list of everything you spent money on that month, says Ariche. “That’s step one.” Consider fixed costs, like rent and car payments, and variable costs, like groceries and utilities. It’s also helpful to list any expenses you don’t pay each month, such as annual fees or quarterly taxes.
2. Check your records. Then see how these estimates match up with what you actually spend. Get your recent debit and credit card statements and add up how much you’ve spent over the past month.
3. Understand how your expenses and income match up. Once you know your monthly expenses, find the difference between them and your income. Arish calls this the “tears and tissues” step because he realizes that many people overspend.
Alishe says many people are holding on to financial mistakes they’ve made in their lives. Don’t get derailed by the “tears and tissues” budgeting step.
“Shame blocks solutions,” she said.
To progress, seek emotional support and accountability from your community. Think of ways to adjust your spending to balance your budget and give yourself more room to reach your goals.
Also, “understand that money is a team sport,” Ariche says. You need a “board of directors” including a responsible partner, accountant, and financial advisor to help you achieve your goals.
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