Formulating a Budget
	Simply stated, a budget is a plan for coordinating income and expenditures. There is no "average" budget for you to follow. The type of budget that will work for you depends on the spending priorities you set in accordance with your personal needs and lifestyle. Before you can develop a budget, you must know how you are now spending your money; this is called your spending habits. After you have completed the worksheet and analyzed your present spending habits, you will be ready to set spending priorities for this month. Here are some additional tips for tailoring your budget: Keep it simple, but commit it to paper. You will have a better idea of where your money is going. Be realistic with anticipated income and expenses. Plan a regular savings program to cover extra things you may want in the future, such as a vacation or new car, so you will have enough cash to pay for them and to meet unexpected emergencies. Anticipate larger, single payment, annual expenses, and put aside one-twelfth each month. Establish a regular weekly allowance for each family member as an alternative to record keeping of small purchases. Do not set spending limits which are impossible to meet. Keep your budget flexible. It should give you a general idea of how your money is being spent. It should not control how you spend every dime. Pay by check to help maintain records. Consider choosing a chief money manager within your family. <Back