Steps to creating a Closed Circle

These are the steps to creating a Closed Circle Budget:

1. Track your expenditures. You must track your expenses on a regular basis – daily, weekly, monthly, annually.
2. Total your expenditures. When starting your Closed Circle, it is good to have at least 3 months worth of expenditures so you can get an accurate picture of what you are spending monthly. Separate your obligations from your necessities.
3. Capture sources of income. It is important to know where your income is coming from and how much.
4. Determine your wants. Make a full list of your wants and if you are married, have your spouse do the same and agree on all wants.