It’s a good idea to evaluate your finances periodically, especially if you’re planning a major purchase like a new car or home or if there are any significant changes in your income or expenses. Fortunately, most of the information you need is at your fingertips. When you assess your finances, follow these steps to ensure you’re making smart decisions that prepare you for the future.
Create a Monthly Budget
Add up your income To create a monthly budget, you should first determine how much income you have by listing your monthly income including salaries, interest, pension and any other sources, such as a spouse’s income. If you earn a salary, be sure to list your take-home pay rather than your gross pay. And if taxes aren’t automatically taken out of your paycheck, remember to include them as another expense.