Process Essay: How To Create A Budget

Most people in our society considered manage the money effectively as a big challenge in their life. If a person has a lot of money, that does not mean he can spend it carelessly. All people should think how to manage money because it is good to think about the future. Managing money like many skills needs to learn, and people can earn over time. Create a budget, set clear financial goals, and have a saving plan are an imperative method to take advantage from every cent, dollar the person earned in his life. If someone needs to save money, he should create a budget. Creating a budget is not complicated as many people think, but it also needs planning. First of all, every person should know his monthly income. This step helps a person …show more content…
If a person wants to make most of his money and fulfill all, his obligations is must set goals and planning for the money intelligently. The first thing he should create is a list of short and long-term goals to help him keep track of how to change them into financial plans. A short-term plan allows a person to manage his money. So, he can do his goals in limited time like two or three years. Examples of short-term plans are the household furniture, home improvements, or a car downs payment. A long-term plan set to make the goal in the future. Planning for the long-term goals allows the person to meet these goals by finishing them step by step. Examples of Long-term goals are buying a house, start a new business, or save for retirement. Secondly, if anyone wants to make sure that he is moving in the right direction to meet some goals he must re-evaluate them regularly. In fact, most people change their thinking over time, so this evaluation allow them to add or drop some goals. Stepping back and looking at their goals is a very important thing because most people feel frustration after three or four years when they find out some goals are not truly match what they care about now. Without clearly identified goals a person might mismanage his money, and it leads him to fall into financial