Ch. 01:

Ch. 01:
Budget Basics


If you are like most people, you have ups and downs when it comes to your financial situation. In most cases, there are many more down times than up. What if I were to tell you that your situation can be much better than that, would you believe me? Well, you should because it is true!

Many people often hinder their own financial success because they own mentality gets in the way. They may think that success is not possible and therefore they, in fact, make it impossible. The mind is very powerful so you must think positively while trying to achieve financial success and goodness will come your way.

Achieving financial success can be done a lot easier than you probably think it can. If you are determined and know what you want in life you will surely be able to do it. It is important that you know however that the first and most important step in achieving financial success is creating a budget.

The following chapter will go over the basics of creating a budget. In this chapter, you will find some helpful information that will help you as well as some tips on budgeting. The information provided is quite useful, so make sure to pay close attention.

The Basics

Before you will be able to reach financial success you will have to understand a few things. We will begin with the basics of creating a budget. The basics are what will serve as your foundation. It is important that you have a very strong understanding of these basics to ensure that you have a strong foundation.

The following information will shed light on the basics for you. Keep in mind that some information will be explained in greater detail later on in this book.

Determine What Your Current Financial Situation is:
If you want to create a budget that works for you it is important that you take the time to determine what your current financial situation is. You must be honest with yourself during this process, no matter how difficult it may be. You cannot make your situation seem better than it is if it is bad you must accept it. Realizing how bad your financial situation is maybe the motivator that you need to create a budget. People often do no change their behaviors until there is a reason to do so. Determining your current financial situation may be the reason that helps you change your ways.

Determine What Your Financial Future Looks Like:
While trying to create a budget it is important to consider what your financial future will look like if you do not create a budget for yourself. You really need to try hard to visualize what your life will be like if you do not get your finances in order. Think of what your family may go through and the hard times that they will all have to face. What if sometime in the future you cannot even put food on the table? What if that time in the future is sooner than you think?

These visualizations and thoughts will likely be a motivator to help you change and create a budget. It may be scary to think about it but it can become a reality so it is important to acknowledge the fact that it can become real and change your future.

Figure Out How Much Money You Want:
It is important for you to set financial goals for yourself because they will help you stick to your budget. Do not try to set an exact figure of money as your goal. Instead, you want to try to come up with a general number. This number will serve as your gauge to let you know if you are pulling in enough finances. Picking an exact number is a sure way to drive someone crazy and set them up for failure. Having a general number is much more beneficial because it can let someone know when they pull in more than they were expecting while at the same time lets them know if they fall behind and pull in less than what was expected.

Be Realistic:
When trying to create a budget for yourself it is important that you always remain reasonable and that you are realistic with yourself. Do not make an outrageous budget that you cannot follow. This is a sure way to set yourself up for failure and feel like you are not capable of following any budget. Keep in mind, you may have to create different budgets as the time goes by. You will want to start with a less complicated budget that will be easier for you to follow. Once you have been able to follow this budget without setbacks it is time to move on to more complicated and strict budgets. Before you know it you will be budgeting at ease and all of life’s benefits will be flooding into your life.