Is there something you want to do, like get a new apartment, buy a new car or further your education? Following these three easy steps can help you maintain your lifestyle and achieve your objectives.

Set goals for yourself

Setting goals for yourself is the best way to achieve your dreams. Figure out how much money you’ll need to set aside and for how long. For example, if you want to save enough this summer to go to school during the fall session without working, you’ll likely want to save $3,000 in 10 weeks, or $300 a week. If that’s too ambitious, you may need to lower your sights.

Do the math

After you’ve set realistic financial goals for yourself, you’ll need to decide what resources you may require to achieve them, i.e., to set a certain amount of money aside every week and include it in your budget.

Prepare a budget in three easy steps

  1. Make a list of your income (from all sources) and expenses
  2. Subtract your total expenses from your total income
  3. Analyze the result

Example of a monthly budget

Income

Allowance: $50
Work earnings: $1,075
Cash gifts: $100
Total income: $1,225

Expenses

Outings: $200
Telephone: $75
Clothing: $200
Gifts to others: $75
Savings: $1,300
Total expenses: $1,850

Deficit: -$625

In this example, you’ll need to either adjust your goals downward or increase your income.

Insight

To help you in this exercise, you can use our budget calculator.

End of the insight