This is Financial Advisor Patrick Munro, talking to you about how a household budget works. Many Americans do not have a household budget, so as a result, they’re ending up seeing less a month left and less money at the end of the month. It’s very important and criticalthat you develop a budget and the way to do it is to set up essential items, which areshelter, food, clothing, insurance, the various items that you really cannot do without. Make 13 Low Cost Interior Design Ideas those your main items as opposed to your income, and then make sure that there’s enough ofincome to take care of those essential items. Below that is your discretionary income. Thisis things such as gym memberships, cable TV, various things that are an option to you and your family.
When financial times get tough, discretionary spending is the line items thatare the ones that go first, because normally the cost of gasoline and food, those essentialitems in your budget, are going up. Make sure you have an effective line item schedule thatyou stick with, but don’t be so critical on yourself that you can’t allow some fun everynow and then because it’s very important to do that. If you’re creative and you stickto the budget you’ll benefit longterm. This is Financial Planner Patrick Munro.