Discussing Budgeting Basics

12 May 2015

(WJBK-TV/FOX Detroit) - We work. We get paid. We still have no savings.

How do we fix that?

The first and most important step to effective financial planning is developing and implementing a budget.

Andrew Johnson from GreenPath Financial Wellness says budgeting simply means to live within one's financial means. But there are steps you need to take to get there.

Needs versus wants - Sometimes you have to say out loud "Do I really need this, or do I just want this?"

Building a budget - This helps put your money needs into perspective. Budget for a few months and take into consideration infrequent needs like new clothes, or insurance you might pay on a quarterly basis.

Set realistic goals - If it's hard for you to see saving up $300, break it down into saving $10 a week for 30 weeks. Set up goals, that, while attainable are ones you feel confident in accomplishing.

Watch the video below with FOX Detroit Money/Business Editor Murray Feldman.