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I like the way Seguin Financial always asks for my input and fully involves me in the decision-...

Nick Cardone

7150 Hawthorne Dr. Unit 104
Windsor, ON, N8T 3N3

Phone: (519) 974-6688
Toll Free: +1 866-973-4846
Fax: (519) 974-7192

info@seguinfinancial.com

How to Set-up a Successful Budget

Setting up a budget that will work for you is the first step in financial planning.  Here's how to do it right.

  1. Start with a budget worksheet.
     
  2. Go through your check book or bills for the last two to three months and add and delete categories from the worksheet to fit your expenditures.
     
  3. Think about your hobbies and your habits and be sure to add categories for these expenses.
     
  4. Go through your pay stubs and calculate your average monthly gross pay.
     
  5. Do the same for an interest income, dividends, bonuses, or other miscellaneous income.
     
  6. For each expense category, try to determine a budget amount that realistically reflects your actual expenses while setting targeted spending levels that will enable you to save money.
     
  7. Once you're comfortable with your expense categories and budgeted amounts, enter expenditures from your checkbook from the last month.
     
  8. Keep track of cash expenditures throughout the month and total and categorize these at the end of each month.
     
  9. Subtotal the income and expense categories.
     
  10. Subtract the total expenses from the total income to arrive at your net income.
     
  11. If the number is negative, your expenses are greater than your income.  Your situation can probably be greatly improved by changing your spending habits.
     
  12. If you have a positive net income, transfer most of it to a savings or investment account at the end of each month.  Extra cash left in a regular checking account has a way of getting spent.
     
  13. After you've tracked your actual spending for a month or two, analyze your spending to identify where you can comfortably make cuts.
     
  14. Once you've got the budgeting process in place, take an in-depth look at your largest spending categories, brainstorm about ways to reduce spending in specific categories, and set realistic goals.
     
  15. Update your budget and expenses monthly.

Basic Budget Worksheet For Personal Budgets

 

CATEGORY MONTHLY BUDGET
AMOUNT
MONTHLY ACTUAL
AMOUNT
DIFFERENCE
BETWEEN ACTUAL
  AND BUDGET

INCOME:

     
Wages Paid      
Bonuses      
Interest Income      
Capital Gains Income      
Dividend Income      
Miscellaneous Income      

INCOME SUBTOTAL:

     
       

EXPENSES:

     
Mortgage or Rent      
TV      
Telephone      
Home Maintenance      
Car Payments      
Gasoline      
Auto Maintenance / Fees      
Other Transportation      
Child Care      
Auto Insurance      
Home Owner / Renters Insurance      
Computer Expense      
Entertainment / Recreation      
Groceries      
Toiletries / Household Products      
Clothing      
Eating Out      
Gifts / Donations      
Health Care      
Hobbies      
Interest Expense (credit cards)      
Magazine / Newspapers      
Federal Income Tax      
Provincial Income Tax      
CPP Tax      
Personal Property Tax      
Pets      
Misc. Expense      

EXPENSES SUBTOTAL:

     
       

NET INCOME:

     

 

Mutual funds are offered through Manulife Securities Investment Services Inc. Insurance products and services are offered through Seguin Financial Group Ltd. Seguin Financial Group is a trade name used for both mutual fund & Insurance business activities. Banking products and services are offered through referral.

info@seguinfinancial.com