We all hear about how we should create a budget and spend less than we make. However, so many people underestimate how important this is and it can get them in trouble very quickly financially. It’s not the most exciting thing to hear this, but a budget is a must whether you are a college student with little to no income, a parent, a successful CEO making 1 million dollars, or someone trying to make ends meet.

If you want to make more money, but have no idea where all of your current money is going, this can be a problem. If you don’t know where your money is going, how do you expect to save and make more?? You must measure things that you want to change and expand in life. This is why top athletes measure every workout and everything they consume. If you measure it, you can go back and see what happened to it.

The most efficient thing to do is tell your money where to go as opposed to it telling you. Financial expert Dave Ramsey suggests creating a zero based budget where your everything you make has a place for it before it gets spent. You allocate EVERYTHING including, rent, food, entertainment, gas, shopping, cable bill, and savings. Yes that’s right, including savings. So if you make $5,000 a month, all of those things should equal zero on your budget once they are allocated.

Dave Ramsey has some great tools on his website that do all of the hard work for you that I highly reccomend. You can see it here:

http://www.daveramsey.com/tools/budget-forms/

Once you create this budget, you will be at the beginning stages of making things happen in your life.

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