How to Easily Create a Budget!
It may sound scary when someone mentions the word ‘budget’, but it doesn’t have to be. Even if you have never had a budget before, it doesn’t have to be complicated. You don’t have to be a numbers person to create a budget.
Here are some easy tips to get you started.
Start off with listing your income sources. Figure out what your monthly income is from take-home pay or extra work you may do. If you have any money coming in during the month, you want to write it down. This will give you a figure for your monthly net income. This is an important place to start since this is the actual money you have to work with each month.
Expenses can be tricky, but you want to begin with the expenses you have that occur each month and are fixed. Things like rent or mortgage, car payments, utilities, insurance, phone and any loan or credit card payments that are regular. These payments will likely stay the same, so you want to have these expenses listed separately.
The next expenses to look at are those that can fluctuate. These expenses you can really take a hard look out and are easier to adjust that fixed monthly costs. Some of these expenses you will need to just average for the month, such as groceries, haircuts, entertainment, and dining out. You will want to put a number down for each of these variable expenses, just so you have an idea how much you are spending in these areas. If your expenses are more than your income, you will need to look here to find places you can eliminate spending.
One thing you don’t want to leave out of your budget is savings. This would include retirement savings, as well as an emergency fund for unforeseen expenses. You should work your budget so that you can put money in savings each month and still have enough to pay your bills. Have part of your paycheck automatically deposited and you won’t even miss it.
If you want to transfer your budget from a written one into something electronic, please check out my previous post on the Best Budget Apps.