Closed Circle Budget in depth

As I mentioned on my previous blog, the Closed Circle is broken down into Obligations, Necessities and Wants.

• Obligations are things that you are obligated to pay on a monthly basis, whether you are around or not.
• Necessities are things you need on a regular basis, however you would not have to pay for if you were away from home.
• Wants are material things that you want.

Being on a Closed Circle budget requires you to make a full list of all your obligations, necessities and wants. From there, you can get a very clear picture of where you are at and where you want to be in terms of your finances.