 Budgeting your money is often a very difficult task to complete. It takes planning to create a budget and commitment to stick with it. A monthly budget can help in many ways including cutting down on unnecessary expenses, help you save more money, and also allows you to pay extra on bills that need paid off.
It may take a few months to get your budget set up correctly and accurately for you and your family. You may have to create one and then adjust it for the next month until it is accurate and achievable for you. So don’t get discouraged if you go over your budget the first month or two.
| FIRST STEP |
The first step in setting up a budget is to determine your monthly income. This should include your salary and any other income such as tips if you wait table, child support, or even a bonus. |
| SECOND STEP |
The second step is to determine your monthly expenses. First on your expense list should be money put into your savings. Tip: Pay yourself first. If you wait to see what is left at the end of the week, you are less likely to save. Then divide up the remaining expenses into categories such as food, education, transportation, and housing. You may want to list all items under each category to ensure you have not overlooked an expense. For example, housing may include your gas bill, repairs, and the house payment. |
| THIRD STEP |
The last step is to find out your monthly net income. To find the net income, take your total monthly income and subtract your total monthly expenses. Remember, you want this number to be positive. |
Keep in mind, there is no wrong or right way to set up a budget. Find one or create one that fits your needs. The main point is to find one and stick with it to increase your savings and not to over spend.
Additional tips to help you save:
 Use technology to your advantage. Have money automatically transferred out of your checking account into your savings. If you have this done automatically every time you get paid, your savings will add up and you will be less likely to miss the money.
Make certain that the money you are spending is on items that are necessary and not on items that are just wanted.
Pay your bills on time and pay more than the minimum amount. This will help you avoid late fees and the sooner the bill is paid off, the more you can save.
|
BUDGETING