How to Create a Balanced Budget to Become Financially Fit

Most of us want to be financially healthy and stay out of debt. However, it’s not always that easy. Often our expenses far exceed our income, and then things start to pile up. It’s incredibly helpful if you create a balanced budget, and over time, you can drastically improve your financial situation.

A balanced budget is when your actual income equals or exceeds your expenses. It may require a bit of planning and making some changes, but it is entirely possible to live within a balanced budget.

If your income equals your expenses precisely, that is called “break even.” Although you can live that way comfortably, the goal would be to earn more than you spend and put away some money for the future.

Using a budget, you can keep a close eye on your income and expenses and find areas where you could cut. A budget also helps you plan for upcoming bills, so you don’t miss any payments and pay on time, preserving your credit rating. Budgets also help you avoid overspending and can help with long-term savings goals or big expenditures like a new TV or appliance.

Learning how to budget should be taught in schools, but people often need to discover it for themselves. Creating a balanced budget is not hard and can help you in numerous ways. Saving money can often be a struggle, but if you live by a balanced budget, you may be able to save money for the first time ever. Seniors and college students benefit greatly from a budget because often they have limited income and fixed expenses.

To start creating a budget, you should gather some information, such as your last month’s worth of pay stubs. Then, collect all your previous six months of bills and average the cost so you can use those figures for expenses. Don’t forget about gas, groceries, and any takeout food or entertainment you use each month. If you are not sure about a figure, estimate it.

If you need to, you can look at your W2 forms from last year’s taxes to see what your after-tax income totals and split it by month or week. It’s good to break down your expenses as tightly as possible; weekly is best, but monthly will work too.

Use a spreadsheet program to list your income and expenses on the left and each week or month at the top. After you gather all the known items, create a row for extra expenses like birthday and holiday gifts, insurance premiums, and other things that do not occur regularly. The more detail you add in, the easier it will be to stick to your budget.

As each week or month passes, update your budget with actual figures, and you will start to see trends where you may overspend and could cut out certain expenses. After a year’s worth of budgeting, you will have learned a lot.

Once you get rolling, add a row for savings and pay yourself a small amount each month that goes directly into a savings account. This amount will steadily grow, giving you a nice nest egg to fall back on if you need it.

You never know when an unexpected expense may pop up, and it’s nice to be prepared. If you have a budget and are sticking to it, you might be okay if a home appliance or electronic device breaks and needs repair. And although devices often come with a manufacturer’s warranty, it rarely provides adequate protection to prevent high repair bills.

The sad truth is that most manufacturers’ warranties are limited, covering only a short amount of time and only paying for repairs when the product is shipped with manufacturing defects. But sometimes, these defects don’t appear until after the warranty runs out. In that case, you are left paying for expensive repairs out of pocket.

Investing in an Upsie extended warranty can help. Upsie’s warranties are budget-friendly because they are affordable and protect the consumer from paying repair bills. Never again worry about something breaking and having to shell out your hard-earned money to fix or replace it. With an Upsie warranty, you can call claims 24/7 and schedule a repair quickly. If the certified local technician can’t repair it, Upsie will replace it on the first claim.

Customers love Upsie because warranties cost up to 70% less than warranties from retailers and competitors. In addition, Upsie covers accidental damage for many products as well as manufacturing defect issues. Upsie offers warranties for electronics, appliances, gaming equipment, cameras, fitness equipment, and more!

Get the peace of mind you cannot find anywhere else and keep yourself on budget with an Upsie extended warranty.