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The best way to put yourself in a position to improve your financial health is to make abudget.
While it may seem intimidating, budgeting doesnt have to be complicated.
Top financial institutions highly recommend using budgets as a tool to keep your finances on track.
Personal finance expert Rachel Cruze agrees and knows the best way to create and stick to a budget.
In arecent videoon her YouTube channel, she broke down the budgeting process into five steps.
If you want help getting started,heres what she suggesed you do.
Cruze said you should also include your partners income streams if that applies to your situation.
Step 2: Determine Your Expenses
Youll also need to determine your regular monthly expenses.
Cruze recommended listing them in order of importance.
Start with fixed costs such as your rent or mortgage, utilities, insurance and car payments.
Dont forget to put some of your money towardsavings goals and investments.
Cruze also suggested making a category for miscellaneous and unplanned spending.
When you subtract your expenses from your income, it should equal zero.
Cruze explained this is because every dollar coming in should be assigned to a category.
Budgeting isnt always a straightforward process.
Tracking your spending will enable you to stay on budget and reach your financial goals over time.
There are multiple ways to keep track of your spending.
Downloading a budgeting app may be the easiest.
Step 5: Look To the Future
Every month is different.
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