Page 15 - Book3E

3. Put each expenditure you recorded during the month in the appropriate Monthly Expense column. You may be surprised to find that you have to create new columns for expenses you hadn’t thought about.
4. After all of your expenditures have been put into one of the columns, total each column at the bottom. You now have a complete picture of where your money is going each month.
This exercise is the best way to reveal which categories are needed in your budget, which categories need the most money allocated to them, and where you can improve your spending habits. It will quickly become apparent where you are spending too much money. It will also become apparent which areas need to be included in your budget that you may have thought you could eliminate.
Let’s Review__________________________________
Prioritize Your Financial Activities
The best time to establish what the important areas of your financial life are now and what you would like to see in the future is while you are creating your budget. Should you save for your children’s education or pay off your mortgage early? Should you deposit the maximum possible in your 401(k) or should you pay off high- interest credit cards? Some bills are more important than others, e.g., the telephone. If the telephone bill isn’t paid, your best means of communication may be eliminated.
Talk with your family about your financial priorities and record your three highest priorities here.
1. ____________________________________________________ 2. ____________________________________________________ 3. ____________________________________________________
A Rose, or a Budget, by Any Other Name 7