A Change in Lifestyle

To avoid getting into financial problems in the future, you must understand your flow of income and expenses. Some people call this making a budget. Others find the term budget too restrictive and use the term spending plan. Whatever you call it, spend at least two months writing down every expenditure.

At each month’s end, compare your total expenses with your income. If you’re overspending, you have to cut back or find more income. As best you can, plan how you’ll spend your money each month.

If you have trouble putting together your own budget, consider getting help from a nonprofit group that provides budgeting help for free or at a nominal fee.

Your thoughts on this subject? Your comments appreciated!

Content © Rich Brott, 2011

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