Budget Planning Guide

Creating a budget planning guide helps you plan for unexpected future expenses.

Planning a personal budget is important for tracking your fixed and variable expenses. A budget planning guide not only helps you sync your current financial status with long-term retirement goals, but also helps you plan for major life events and dependent care.

Function

A budget planning guide allows you to balance your cash flow with total expenses. It also outlines a clear path toward your personal and financial goals, whether it is saving for a trip abroad or retiring by age 55. Controlling finances and measuring your spending and savings habits against your budget is another function of a budget planning guide.

Considerations

One of the first steps to putting together a budget planning guide is assessing your saving and spending behaviors. Assembling documents such as receipts, income tax statements, pay stubs and bank statements help you separate your income from expenses.

Benefits

In addition to saving for life after retirement, planning a budget helps you pay for unexpected expenses such as disability or divorce. Other benefits of budget planning include debt management and greater visibility into your personal assets versus liabilities.

References

• Consumer Action: Budgeting and Planning
• Colorado State University: Budget Workbook