Brandi RhoadesCreating an Annual Budget
August 21st 2008 21:34
Many top-notch budgeters suggest creating an annual budget rather than a monthly one. While that may seem tough, it's really helpful to keep you from avoiding financial hits at crunch times during the year.
Start with your annual income. Then take your mortgage, average utility bill, grocery allotment, and other known monthly expenses. Multiply them by 12 and put them as line items on your annual budget.
Now take into account any insurance payments, renewal fees, and other semi-annual or annual expenses you have. Include them in the budget. Also calculate what you'd like to save over the course of the year.
Give yourself a budget for items you know will come up, such as a wedding in 6 months, holiday gifts, and back-to-school shopping. Allowing for these expenses in the annual budget will keep you from using credit cards or feeling the pinch when these times roll around.
Once you have an idea of how much of your annual budget is left, you can consider what to do with the remaining money. Permit yourself some entertainnment money and put some away for unexpected expenses.
Use this annual budget sheet each month to track where you are in each category. Remember that Christmas and similar categories will simply sit and gather money until the end of the year.
Start with your annual income. Then take your mortgage, average utility bill, grocery allotment, and other known monthly expenses. Multiply them by 12 and put them as line items on your annual budget.
Now take into account any insurance payments, renewal fees, and other semi-annual or annual expenses you have. Include them in the budget. Also calculate what you'd like to save over the course of the year.
Give yourself a budget for items you know will come up, such as a wedding in 6 months, holiday gifts, and back-to-school shopping. Allowing for these expenses in the annual budget will keep you from using credit cards or feeling the pinch when these times roll around.
Once you have an idea of how much of your annual budget is left, you can consider what to do with the remaining money. Permit yourself some entertainnment money and put some away for unexpected expenses.
Use this annual budget sheet each month to track where you are in each category. Remember that Christmas and similar categories will simply sit and gather money until the end of the year.
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