You know your goals and what you typically spend each month. Before you compare it to your monthly income…..review the spend categories and consider which ones you could spend less on and how much.

Now compare your actual expenses to your monthly income. Does it cover them? How about if you add in some savings or debt repayment (whatever will help you meet your goals)?

The trick is finding the money. Before we jump to finding a second job, consider other streams of incoming money you may have. Do you typically get a tax refund? How about a bonus? Are you paid biweekly (this can equal 2 extra paychecks each year if you can live on the other 24 – 2 per month)? Do you work overtime or extra work? What does this add to? Perhaps this is a way you can fund your goals? The trick is to know what you plan to do with this money as soon as it lands in your hands….put it directly to your goal(s) rather than letting it run through your fingers.

Another place to look is to reduce expenses in areas where you have the most control such as entertainment, clothing or gifts. Other changes to cut costs may be more drastic lifestyle changes such as a change in vehicle.

Increasing income is often an option but may not give you a quick fix.

Maybe it’s a combination of the above that makes your budget balance.

Next week we’ll look at keeping on track with your plan and budget.