1. Get the whole picture.
2. Record the whole picture – you need to record all unexpected expenses, annual or quarterly expenses, monthly expenses, weekly expenses and discretionary expenses.
Unexpected expenses – home repair and maintenance and medical bills
Annual or Quarterly expenses – Homeowner’s Association Dues, license renewals, insurance and property tax.
Monthly expenses – bank loans, credit card payments, rents, utilities, internet connections, cables, and others.
Weekly expenses – groceries, personal care, child support and transportation.
Discretionary expenses – books, magazines, entertainment, dining, vacation, travels and membership fees.
3. Compute your monthly expenses.
4. If expenses are over the income, you need to adjust your budget.
5. Review your budget worksheet. Spot any errors and make necessary adjustments and re-total.
6. If the expenses are still over the income, make new sources of income.
“Do not wait for opportunities, you create opportunities”
7. Always keep a savings balance for a rainy day. Ideal amount is equivalent to six months of your net income.
8. Tithe or give back to God at least 10% of your income.