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The Best Gift You Can Give Yourself
Posted By Ron On December 5, 2008 @ 6:00 AM In Life | Comments Disabled
If you started a new company today, the FIRST thing you would need is a plan. A budget  that addresses the business’s income and outgo is just a plan put on paper. It would be inconceivable to start a business without a plan or a budget.
If you were going to take a trip to a place you’d never been, you need a plan (a map or GPS) to help you get there.
A budget  is simply a spending plan that includes income from all sources and pre-allocated uses of that income. We have five primary uses for that income:
2. Paying Taxes
3. Repaying Debt
4. Current spending
5. Saving for the Future
Within each of these primary uses, there can be multiple sub-categories. Groceries, eating out, and entertainment would be sub-categories of the Current Spending category. Investments, college savings, and emergency fund  cash would be a sub-category under Saving for the Future.
The Purposes of a Budget Are:
Just mention the word budget  and almost invariably people think about lack of freedom, constraints, inflexibility, guilt, and other negative images. But in reality, making a budget is the same as taking a trip along a pre-planned route. Want to take a side trip? Sure, just know where you’re going. Run into a detour? Life happens! Setting a clothing  budget for your 12 year old son at the beginning of the year means nothing if he grows 8 inches in the next 10 months.
Living without a short term spending plan can cause feelings of fear, frustration, confusion, and oftentimes even relationship conflicts. So go ahead, give yourself the gift of a budget!
With a budget, you’re able to know what you have available to spend. Not every dollar, pound, rupee, peso, or yuan is available to spend. Budgeting  causes you to focus on “net spendable income” because the amount available for Current Spending is the amount that remains after your priorities, after taxes, after debt repayment, and if you tithe–after tithing.
The basics of setting up a budget are pretty simple, and if you’ve accurately allocated income according to your priorities, a budget isn’t that hard to follow.
What DOES become difficult is the tracking of your expenditures. For this reason, I recommend budgeting  software such as Mvelopes Personal 3.5* . This is a fantastic budgeting  software system that does all the organization for you. Mvelopes has put together a Flash Video you can watch to get an idea of how it all works . Give it a few seconds to load and I think you’ll be impressed as I was.
Forget what you know about traditional budgeting. Mvelopes is a revolutionary spending system  that will help you:
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