Most people don't know much about finances or budgets.  In fact most of my clients tell me they learned very little at school and their family about the topics.  So no wonder that the very thought frightens most of us.  My goal is to make this all easier for you.  To help you achieve success and confidence with your personal finances. 

We will start with the basics and move through more and more strategies for success.  

Not only have I done all of these I have help my clients over the pass 30 years gain financial success via these methods.  I have had a long career as a real estate agent and broker, real estate and investment trainer and teacher.  My personal portfolio has many businesses and real estate properties, not to brag, but to set your mind at ease that I do have the knowledge and expertise.  

I will set up my personal blogging post in what I think is the best step by step progression of information to keep you not only interested, but not overwhelmed.  

    Your personal finances:

Let's start with the basics.  Think of your personal finances like a business, because it is. It is your business.  I don't want to overwhelm you with the idea, so just keep this in the back of your mind for now.  Let it sit and ponder on it will you sleep.  We will come back to this concept in later posts.  

For now I want you to focus all your attention on this concept of designing a budget. 

Most people know they should create and live by a budget, but they really don't know how and most don't follow though even when they do know how. 

Most people think of a budget as a negative thing to do.  Even governments don't seem to keep to a budget.  So why should the averaged person be expected to stay within a budget?  

I thought the same way because no one ever explained to me the purpose of a budget or even how to create one.  What I was told was how difficult it was to live within a budget.  Or how restrictive a budget is.  How difficult it is to even understand a budget. 

Out of necessity, I learned what the purpose of a budget was for me.  It was when I stumbled upon this simple budget formula that I saw the great potential for financial growth.  

Formula: Income - Expenses= Base Line

Yep, that's the mind blowing formula!  

Write it down on a piece of paper.  Really write it down, it will help you remember it. 

A budget is just this simple.  

Your income minus your expenses equals your financial base line. 

Well you say, that is simple, but there has to be more.  Well, yes and no.  Depending on your personal situation there will be more or less expenses.  And maybe, hopefully more streams of income.  But otherwise, that's it. 

Add up the totals from both income and expenses.  

Income from all sources.  

Expenses, all expenses, even that cup of coffee, mid-day snack, everything.  

Then do the math and subtract the expenses from the income column.  What you had it your base line.  

Now, here is the exciting part.  Look at your base line.  That represents what you currently have coming in and going out.  If you could increase your base line you could being to see a way to start investing.  To let your money work for you.  

There are two ways to increase your base line.  What are they?  

Everyone always shouts out, decrease the expenses.  Yes, that is one way and I strongly encourage you to do that.  

And most people, at this point, say increases income, "but I don't want to work two jobs" or "I already work two jobs".   

We are going to go into both to these methods in more detail, however, before we do you have some homework.  

Before my next post:  write down all the sources of your income and expenses.  Know your current base line.   With expenses, it is helpful to keep a sheet of paper, log book or log on your phone of everything you spend money on in a week. (better if it is for a month)  You need to know what your habits and taste are, because most of us want what we want and don't want to change.  That's ok, we are not trying to change anything I just want you to be aware of what you are currently doing.  

As we start this new year, I want you to feel that you are taking the steps you need towards creating a better life for yourself and your family.  

Happy New Year!  WM

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