Budget Strategy organization Chart 

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Budget Strategy #1 – Organizational Chart 
 Planning to buy a home? Guess what? There are some very important things you need to know. For the next few weeks, we will educate you about the home buying process. This week is the most important topic: A Budget. This is like a cuss word to some people.  A budget is a tool that keeps money in your pocket – guaranteed! You will never be broke again if you create a budget. 
You’ve heard of it, and some of you have even tried it — detoxifying or cleansing your body by going on a strict diet for a few days, drinking only juices or ingesting herbs. Some people swear by these treatments that promise to help us lose weight. Some folks even say they feel re-energized and fresh after going through such a regimen. But have you tried to detoxify your budget, getting rid of all the bad stuff that weighs you down financially and prevents you from achieving your financial goals? Most experts say detoxify your budget and put your money to work for you by starting with a simple budget. 
We all know we need to budget, but the reality isn’t as easy as it sounds. And who really has the time to stick to a strict money schedule and keep track of every little expense? There are different strategies for budgeting. You will receive some of those strategies in the upcoming week.  For those that like to use paper, excel spreadsheets, or online tools. All the various budget strategies will be presented. 
Organizational Chart 
 Create an organizational chart by starting with three columns (you can use an excel spreadsheet for this exercise or paper): necessity, the necessity with wiggle room, and discretionary (expenses you want to make). 
Then, organize each item of your budget into one of the columns listed. Examples are rent, mortgage, or car payments under necessities. These items are fixed and inflexible. Utilities and food would go under column two. You need them to live, but you can try to reduce these expenses. 
Column three, or discretionary expenses, are items you can live without. These include entertainment, travel, hairstyling and nail care, and tickets to sports events. Now the hard part: Start slashing items in column three, and search for ways to trim column two expenses.