Most people know they need to watch their spending. Like dieting and eating less, spending less is easier if you have a plan. It’s called a budget. And using one can help save you money and make life easier.

5 REASONS TO BUDGET

1. You identify the difference between true necessities and wasteful spending.
   
2. You gain control over buying and reckless use of credit.
   
3. You can apply the savings to an emergency or retirement fund.
   
4. You begin to focus on your future financial security.
   
5. You can ease stress and worry over making ends meet financially. 

Living on a budget is easier said than done, of course. But given time and practice, you’ll appreciate the results of your budget. After all, knowing how much money you’ve got coming in and going out is very important — not only for your future, but for your peace of mind. Read on to get started.

STEP 1 

Pull your numbers together. Collect the paperwork related to your monthly expenses: credit card and bank statements, check register, and all your fixed bills, such as loan payments, insurance, utilities, tuition, child support and automatic retirement deposits.

STEP 2

Do the math. List all of your income and expenses using the worksheet below. Don’t include income that you’re not sure to receive, such as year–end bonuses or tax refunds.

STEP 3

Determine your debt. Does your budget worksheet show your spending consistently exceeds your income? If so, your No. 1 goal is to cut spending quickly before your debt causes a serious money shortfall. Use the Budget Worksheet to calculate how much you can save and how long it will take after meeting obligations each month.

The content herein is in no way intended to serve as a substitute for professional advice. Unauthorized reproduction in any form of any part of this publication is a violation of federal copyright law and is strictly prohibited. Ebix Benefits Administration and Wellness Publications © 2018, Ebix Inc. All rights reserved. • Two Perimeter Park South, Suite 160 East, Birmingham, AL 35243 • 1-800-871-9525 • www.ebix-ebaw.com. Certified financial planner review: 8.2014 BMM60221