How to Create a Budget

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Create a budget by listing all current, variable and fixed expenses, keeping track of income, and setting up a template on the computer or a paper ledger to keep track of the budget. Be financially responsible and successful by learning to create a budget with tips from a registered financial consultant in this free video on money management.

Part of the Video Series: Money Management
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Video Transcript

This is Financial Advisor Patrick Munro talking about how to create a budget. A budget is an important core document that every financial person that is successful should have. What you want to do, first off, is get a feeling for your current expenses and list them on a line by line basis. There are different kinds of expenses. Current expenses, of course, range from food, shelter, gasoline, utility bills, and things of that nature that come on a regular basis. Then there are credit card installments that do vary and you can work with them, they're called variable expenses. Then, of course, there are fixed expenses like mortgages and rent, and things of that nature. These are your overall liabilities. Then, of course, opposite of that is your income that is going to pay for those expenses. You want to be very organized. The best way to do this is to get a ledger, of course, nowadays, you can work with computer software that will help you already set up a template for your expenses and your liabilities, and of course, as you get further along in time, you will develop a net worth, with having more in income than you do have in expenses. Keeping a budget is a key task to being successful financially. Once you get the habit, it becomes something that you look forward to because you are always able to see where you stand financially at any particular given time. This is Financial Advisor Patrick Munro talking about how to create a budget.

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