By: Dan Cavalli

Money & Business Strategist

In its most simplistic

form, a budget

outlines the

expenses that you

expect to pay in the

future. Budgets

normally cover a

one-month period,

but yearly budgets

are not uncommon.

For the purpose of this article, we will

focus on monthly budgets because

they can be updated and adapted

continuously to meet your changing

financial needs.Do you need money making ideas? Go here

Before you can create a

realistic budget, you need

to analyze your cash flow.

Filling out a cash-flow

worksheet is a great way

to figure out where you

are spending money.

However, you should be

less concerned at this

point about what you

have spent in the past

and ready to create a plan

for future spending.

A cash flow worksheet will help you

determine what you spend currently

and give you an idea of what expenses

can be eliminated from your budget

and those that have to remain.

The first section of your

budget will include all of

your income including

money earned from work,

alimony, child support,

disability, student loans,

etc. Include all of the

money that you receive

on a regular basis. If

certain forms of income

are sporadic or

unreliable, do not include

them.

For example: If you only receive child

support here and there, remove it from

your budget. It would be risky to set up a

budget using income that may never come

in as planned. If your job is insecure, you

may wish to make adjustments here as

well.

money in savings by a certain date, write

down the goal and break it down into

monthly allotments.

On a separate sheet

of paper, write down

realistic goals. If you

wish to create a

savings account and

have X amount of

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If you wish to have

$2,000 in savings in

four months, you will

need to include $200

for savings in your

monthly budget.

Include all of your

goals here and break

them down into

monthly financial

goals.

Create a rough budget outline by

writing down all of your monthly

expenses, including goals, and

subtracting them from your income. If

you have plenty of money left over,

you’re in good shape.

If you’re like most, however, things

will look a little tight. If your budget

seems impossible, do not worry. A

few simple changes can make your

budget more realistic.

Analyze your expenses.

Study your cash flow

worksheet in order to

determine if there are any

areas where you can

save money. Some of the

best areas to save money

include shopping,

entertainment, vacations,

clothing, and personal

expenditures and so on.

Once you have trimmed all of the

expenses you can, things should

look better. If not, you may need

to adjust your goals a little.

You may need

to push back

deadlines to

make your goals

more achievable.

For instance:

Giving yourself

an extra four

months to obtain

$2,000 in savings

lowers your monthly budget by

$100. Keep in mind that your budget

is not written in stone. You are

allowed to make adjustments when

the need arises.

You can use all

these strategies to

make money,

reduce debt and

improve your life

but it means

nothing unless

you can earn

money without

having to work.

Get my FREE

passive money making secrets at:

http://www.the-richest-man-in-babylon.com

He learned financial fitness firsthand. In 1995, he started his first national business with nothing, but grew it to more than 35,000 customers and $140 million in revenue in less than 18 months. “The Financial Review,“ Australia's leading business newspaper named Cavalli as one of the country's “Internet’s Untold Millionaires.“

More recently, Cavalli's mission has shifted to helping others achieve similar success. He is the author of the internationally sold financial book, "Blueprint for Making Millions."

About Dan Cavalli