You might be thinking…but of course real figures, I don’t use made up ones. Or do you???
The way a business budget normally works is that they allocate a certain amount of money to a certain expense and then they use that as their guide for spending.
Whereas in a ‘personal’ budget or what we call a ‘realistic’ budget you are creating a document that is going to project your income and what you’ll actually be spending as well as then the amount that is different between both the income and expenses.
That’s why it is so important to use actual figures and not just what you may think you are spending or what you might be earning. Using real figures means that you are going to get a REAL budget, based on what you actually produce in income and what your expenses are.
So, your first step in getting REAL figures for a Realistic Budget…
Go through everything, get to know every cent that you have coming in and out. Don’t freak out as this, it’s not as bigger task as you’re thinking.
So where do you find the REAL figures.
- Bank Statements
- Credit Card Statements
- Bills / Invoices
- Government Statements
Yes, it may take some time initially compiling everything but this part is so CRITICAL to getting your budget right. The more time you spend knowing and compiling all of that information into your budget the better your budget will be at being able to tell you.
The reason that you use the above information is because you can get what you are actually paying.
Then once you have all your REAL figures then you know exactly how much money you can allocate to spending, saving and paying off debts.
The next element I’m going through is listing ALL of your Expenses…to be the first to read it join up HERE.