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STEP FOUR: YEAR END REVIEW

Published by sam - 08/10/07 - 02:10:34 am

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The final step in your budgeting process is the year-end review.  When a budget year is complete, add up the monthly totals by category.  Then compare these totals with your annual budgeted amounts and with the previous year’s expenditures.  In addition, you’ll want to look at the overall total money spent and be sure annual income, not counting savings, exceeds annual expenditures.

The review provides a chance to see how you have done and to set goals for subsequent years.  You may want to graph debt repayment and savings so that you can actually see the debt line fall and the savings line rise.

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