Finance: How to Budget

How to Budget

Written by John Mussi

Do you know how to budget? Strangely enough, most people are unaware of how to do so. Hopefully, this information will prove to be a useful guide.

As a consumer, you face many choices on how to manage your money. Knowing how to manage money can help you make smart choices. Your money will work harder for you. You'll be more likely to avoid traps that can undermine your ability to attain your financial goals. You'll be in a better position to pay off debt and build savings.

A few simple steps can make a big difference in making your money work harder for you. The first step is to create a budget:

Monthly fixed expenses:

Start with monthly fixed expenses such as regular savings, housing, groceries, utilities, and car payments. Put these continuing obligations under repparttar heading: Fixed.

Make estimates for all money spent - regardless of how you pay: cash, cheque, credit card, debit card or automatic current account withdrawals. Use current account statements, credit card statements, receipts and other records to help you complete this estimate. Be realistic - it's better to estimate high than low.

Monthly variable expenses: Once you have noted all your fixed expenses, write down your expenses that vary each month such as clothing, vacations, gifts and personal spending money. Put these expenses under repparttar 142356 heading: Variable. You might have these expenses every month, but repparttar 142357 amount you spend could change.

Is Running a Business for You?

Written by John Mussi

Not everyone is cut out to run a business. Not everyone is cut out to be an entrepreneur. It takes a special talent. Some owners of small businesses have it and some don't.

Before you invest time, energy and money, it's important to do some serious self-analysis. In business, there are no guarantees. There is simply no way to eliminate all repparttar risks associated with starting a small business - but you can improve your chances of success with good planning, preparation, and insight.

Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Before you go into any type of business carefully consider repparttar 142355 following questions:

Are you a self-starter? It will be entirely up to you to develop projects, organise your time, and follow through on details.

How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants or consultants. Can you deal with a demanding client, an unreliable vendor if your business interests demand it?

How good are you at making decisions? Small business owners are required to make decisions constantly - often quickly, independently, and under pressure.

Do you have repparttar 142356 physical and emotional stamina to run a business? Business ownership can be exciting, but it's also a lot of work. Can you face six or seven 12-hour work days every week?

How well do you plan and organise? Research indicates that poor planning is responsible for most business failures. Good organisation of financials, inventory, schedules, and production can help you avoid many pitfalls.

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