Chapter 8
How to Make a Budget

In This Chapter

◆ What will a good budget do for you?
◆ Ideal, actual, and compromise budgets
◆ Tracking your historical expenses
◆ Key steps to creating a workable budget
◆ Budgeting pitfalls
One of my favorite moments as a financial planner is bringing up the “B” word. All you have to do is say “budget” and many people start looking for the door. If you were tempted to skip this chapter, or are prone to think that this will mostly apply to other people, you’ve got plenty of company.
Just like those little army tanks in the Godzilla movies, denial is quickly crushed by the creation of a thorough budget. Perhaps that’s why most of us start squirming when we begin talking about one. We know there is nowhere else ...

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