THREE-MINUTE BUDGET CHECK

A budget is a written plan for utilizing available financial resources to achieve financial goals. Maintaining control of personal or family cash flow is the key to financial comfort. Give your budget system a check-up by answering these questions.

Score yourself as follows: 3 points for each "yes" answer, and 1 point if you do this just occasionally or some of the time.

Have you committed financial goals, including amounts required and target dates, to writing?

Are savings and investment included as a priority in your budget?

Do you periodically track actual cash flows against budgeted amounts to gauge and control spending patterns?

Do you re-evaluate and update your budget as required, whenever financial changes occur?

Is each family member allocated some money as a personal allowance that requires no accounting?

Are planned budget amounts used to constrain actual spending behavior?

Have you taken steps to avoid purchases or make them difficult?

Do you hold checks to be mailed shortly before the payments are due?

 

HOW DOES YOUR BUDGET MEASURE UP?

20 or more - Your budget will help achieve financial goals.

4 to 19 - Revise your budget system to eliminate weak points.

3 or less - Make analyzing present cash flows and developing a workable budget a high priority.