Question

Now that you're getting comfortable with a budget, what's the best way to plan for the future?
Write your expenses on a sticky note.
Keep a running tally of bills in your head.
Divide your money into funds, recording income and expenses for each.
Wing it.

Answer 1

The best way to plan for the future is to **divide your money into funds, recording income and expenses for each**. This method allows you to allocate specific amounts for different categories of expenses, which helps you manage your budget more effectively. By tracking your income and expenses, you can see where your money is going, make informed decisions, and adjust your budget as needed to meet your financial goals. This structured approach promotes accountability and helps to ensure that you're prepared for both short-term needs and long-term savings.