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1) What information do you need to create a budget? What sources would you consult to acquire this information?

2) Why is it important to have management approval of a budget?

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The first step in creating a systematic approach to reaching your financial goals is to establish a budget. Whether you're simply trying to determine where all of your cash goes, or, you've set some goals for you and/or your family, the best place to begin is by creating a budget.

1. Determine your total income. You can't budget your spending unless you know exactly how much money you have coming in.
2. Outline your total expenses. Where does your money go? Outline your average monthly costs.
3. Compare your income with your expenses. Are you in the black? If your monthly expenses exceed your income, you've got to trim your spending.
4. Track your spending on a regular basis. Every month, take a look at how you're doing, especially if your circumstances -- and your income -- change.
5. Set goals for yourself. Would you rather have ...

Solution Summary

Establish a budget