7 Budgeting Questions


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What does it take to be successful in managing your money? Almost 8 years ago, our family began a life changing journey with our money.

Based on the results, I feel I can answer that question from our own experience. The truth is that having a working budget every month is the key to winning with your money.

If you develop the skill of budgeting, you will unlock all the potential of your income. With that in mind I would like to answer 7 questions you might have about doing a budget.

Published in: Economy & Finance, Technology
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7 Budgeting Questions

  1. 1. 7 Budgeting Questions7 Budgeting Questions José R. FigueroaJosé R. Figueroa October, 2013October, 2013 www.figueroafinancial.comwww.figueroafinancial.com
  2. 2. 1. Is having working budget absolutely1. Is having working budget absolutely necessary to manage your Money?necessary to manage your Money?  Yes. A working budget is fundamental to your success. If you can’t control your money via a budget, you can’t build savings, you can’t pay-off debt, you can’t plan for the future. October, 2013 27 Budgeting Questions - www.figueroafinancial.com
  3. 3. 2. Can I budget even with a limited income? The reality is that whether you make $40K or$400K, you need to do a budget. A budget gives your income more muscle because when you know where every dollar is going, you will avoid wasting money. And, when you stop wasting money, you can begin to live on less than you make. October, 2013 37 Budgeting Questions - www.figueroafinancial.com
  4. 4. 3. Is Budgeting Hard?3. Is Budgeting Hard? Not really. The mechanics of setting a budget are simple. It’s a matter of simply listing all your income on one side of the column and listing all you planned expenses on another. Make sure you “spend” every dollar on paper first. This means, allocate your available income to a spending category. October, 2013 47 Budgeting Questions - www.figueroafinancial.com
  5. 5. 4. I am not good numbers, what tool4. I am not good numbers, what tool should I use?should I use? You can use something as simple as a yellow pad and pen or something more involved such as an Excel spreadsheet or a computer program such as Quicken. Today there are also tools on the Internet such as Mint.com or YNAB. Use the tool that fits you, but make sure you use something! For me, an Excel spreadsheet has served me well for the last 7 years. October, 2013 57 Budgeting Questions - www.figueroafinancial.com
  6. 6. 5.5. Do I have to prepare a Budget every month? The answer is yes simply because every month is slightly different. For example in one month you might have more birthday celebrations than others (for us June is a big one). Also things such as registration or inspection fees for your vehicle are not due every month. And of course Christmas expenses are very different than say Easter expenses. The more you carry on the practice of doing a budget, the easier it will be to manage the differences every month. October, 2013 67 Budgeting Questions - www.figueroafinancial.com
  7. 7. 6. Does doing a Budget take a long time?6. Does doing a Budget take a long time? No. It might take you longer the first few times you do it as you gather information on your bills and get a hold of historical data on your spending. But after the first few months, it will become a routine. For example, after 7 years I spend less than 20 minutes drafting our monthly budget. October, 2013 77 Budgeting Questions - www.figueroafinancial.com
  8. 8. 7.7. I hate talking about money, can’t I just leave it to my spouse? No. If you are married, you both need to be involved in money discussions and decisions. You each have a vote. One of you maybe more naturally inclined to handle the mechanics but you both have to be in the game. You are building a life together, surely you can handle money together. And if you are single, you need someone in your life who loves you well and who will tell you the truth. That person should review your budget to give you direction and ask the tough questions. October, 2013 87 Budgeting Questions - www.figueroafinancial.com
  9. 9. October, 2013 97 Budgeting Questions - www.figueroafinancial.com “A budget is people telling their money what to do, instead of wondering where it went”. John Maxwell
  10. 10. About the AuthorAbout the Author José R. Figueroa is a Personal Finance Coach/Blogger @ Figueroa Financial: Help and Hope for Your Finances. He is also the author of the e-books 7 Principles for Financial Success and Not Mine, Not Yours, But Ours now available @ Amazon. October, 2013 107 Budgeting Questions - www.figueroafinancial.com
  11. 11. Figueroa Financial: Contact InformationFigueroa Financial: Contact Information Website: www.figueroafinancial.com e-mail: jose.figueroa310@gmail.com Facebook: www.facebook.com/figueroafinancial Twitter: https://twitter.com/FigueroaFin Linkedin: http://www.linkedin.com/in/jrfigueroa Google+: https://plus.google.com/u/0/b/111459341392513036380/111459341392513036380/posts Pinterest: http://pinterest.com/jfigueroa310/financial-coaching/ October, 2013 117 Budgeting Questions - www.figueroafinancial.com