Creating a Budget

A budget is important because its the road map (plan) on how to reach your financial goals and is a tool you can use to determine if you have enough cash to cover your expenses.
When creating a budget, whether for personal use or business I usually like to start by listing the expenses. Once you have listed the expenses you know how much revenue is needed. You can also start by listing your revenue first and then expenses however whatever method you use the goal is to have revenue exceed expenses.

Another preference is to create a month by month budget so that you can easily visualize what is needed every month to be successful. Creating a monthly budget rather than an annual budget is reducing the budget to bit sized chucks. How do you eat an elephant? One bite at a time. Comparing actual results to budget every month is also important so you can make adjustments along the way.

Attached is a spreadsheet you can use to prepare your budget. Change the descriptions were necessary. The important thing is to get started so you are more knowledgable about your finances.

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