Accounting and Finance Foundations

Unit 12

Accounting and Finance Foundations Unit 12: Budgeting and Business Plans 910

Student Guide

Chapter 27

Lesson 27.2 Budgeting Tips and Advice

Budgeting and Business Plans

List Your Expenses

Make a list of your fixed expenses such as mortgage or rent payments, car payments, insurance payments,

etc. After that, make a list of your fluctuating expenses. These expenses include dining out, hobbies, and

other bills or expenses that don’t have a consistent payment. Take the time to review old bank statements

and check registers to help you calculate estimated figures for these expenses. Reviewing your expenses is

vital to successful budgeting.

Separate Your Wants and Needs

After you have made your lists and can see where you’re spending your money, check those lists for places

where you can curb costs or eliminate them entirely. This process is especially important when budgeting

to eliminate debt or to save money toward a specific goal. Any place where you see you’re clearly wasting

money, get rid of it.

Make Sure Your Expectations Are Realistic

The objective of successful budgeting is to help you plan for actual expenses while at the same time setting

goals for spending that will allow you to save money.

Consider Buying Budgeting Software

Part of the reason you do this is, of course, for guidance in successful budgeting. It helps you understand

the expenses categories and helps you map out strategies for successful budgeting. Another part of it,

though, is psychological. By investing in budgeting software, you mean business when it comes to your

budget and saving goals.

SOURCE: Money Instructor. (2002-2013). 5 steps to budgeting success. Retrieved March 12, 2013, from

http://content.moneyinstructor.com/450/steps-budgeting-success.html