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Step 4: Implement Your Budget

The fourth step in creating an effective budget is to try your budget for a month. Record all income and expenses in their proper categories: accurate record keeping is a crucial part of good budgeting. Add up all the amounts listed in each category, and make a note of how much you have left over in each category at the end of each week. Be financially prudent—don't buy things that you don't need or that you haven't budgeted for.

Adjust your plan as necessary to make it work for you. Try to be financially prudent and use each month as a learning experience to help you do better in the next month.

 



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