Plan A Budget
Everyone should set a financial budget to help keep track of expenses and to make sure they aren’t over spending. Here are some important steps to starting a budget.
1. Determine your total income. Add up paychecks, bonuses, tips, etc., so you know exactly how much money you are making each month.
2. Make a list of set expenses. This includes housing, car, credit card, and insurance payments. Also include any other monthly bills you pay such as phone and utilities.
3. Decide how much money you want to allocate for discretionary spending such as food, activities, clothes, etc.
4. Subtract your total expenses from your total income. Hopefully you will end up with a positive number, meaning you are earning more than you are spending! If this is not the case, rework your expenses and try to cut them down as much as possible
5. Set a goal for how much you can save. At least 5% of your income is good, while 20% is even better. You decide what you want in your future and how much you need to save to have that future. There are many different ways to save money. See Start Saving While Young for more information.
6. Be strict in keeping to your budget.
7. Keep track of your allotted budget compared to what you actually spent. If your actual expenditures are either way higher or lower than the allotted amount, consider reworking your budget to be a more realistic reflection of your needs.
There are all different kinds of budget worksheets that you can use to help you start, or you can create your own. The most important thing is to keep track of how much money you have allot and how much you actually spend so you can compare how well you are doing.
Budgets require self discipline, so keep that in mind as you get started. Be committed to only spending as much money as you have set aside. At the same time, if you make your guidelines too restrictive or unrealistic, you won’t like budgeting and will probably give up before too long. Make sure your budget is reasonable and something you can live with. Budgets should be fun because you can always keep track of how much you are spending and be in better financial shape for the future!
budget, budgeting, personal finance, Personal Finance, plan budget budget, budgeting, personal finance, Personal Finance, plan budget
February 24th, 2006 at 6:43 pm
[…] So the moral of the story is to curb your spending! Especially if you are young. Get into the habit of living within your means. Invest in your future and only buy what you can afford! budget college loans debt personal finance student loansbudgetcollege loansdebtpersonal financestudent loans […]
February 28th, 2006 at 6:42 pm
[…] So, I hear you are in debt… like most Americans are. Don’t worry; I have put together a few tips on how to shave those few extra dollars off of your debt roll. Yes, it’s true; we all have some financial baggage that needs a little attention. Whether it be toning, losing, or building that debt/bank account, read below: […]
March 7th, 2006 at 6:21 pm
[…] Educate yourself on social security – learn about social security benefits and all it entails. This will come in handy when mapping your retirement budget. […]
March 27th, 2006 at 2:16 pm
[…] The Sephora collection will help you depict what is best to use for your skin/hair type. This special Sephora Collection includes products from a variety of companies; including the top name brands. You can pick and choose what you feel would be best for your body and budget. […]
March 28th, 2006 at 5:35 pm
[…] Credit counseling is another common way to get out of debt, however, you still have fees to pay which add to your expenditures. More and more people are starting to go with this option especially since filing for bankruptcy is now hard to do. Credit counseling is not such a bad idea; there are just a few things to watch out for. Click HERE for more details. […]
April 20th, 2006 at 2:19 pm
[…] Travel has become very important in the business world today. In fact, many businesses rely on traveling to help market products, seminars and training purposes, conferences, and much more. It is very useful for the growth and development of some companies; however, it can cut into your budget leaving a big dent if you are not careful in the choosing of your travel expenditures. In this extensive website we have put together some information and tips on how to budget your money and precious time when traveling. […]
April 20th, 2006 at 3:28 pm
[…] This site is dedicated to helping you become educated in the difficult and confusing insurance terms and lingo, while providing understandable explanations to your tough-to-answer questions. Throughout our site you will find basic tips, strategies and suggestions to help you make sound insurance decisions. By becoming educated in the insurance world and understanding your insurance plan, as well as the words your insurance salesman or agent is using, you can confidently go out in pursuit of insuring your family and closest possessions. Financial success comes from being properly insured, and prepared to handle any situation that is thrown your way. […]
April 20th, 2006 at 5:10 pm
[…] • Set a goal. If you have something you are working for, it is easier to watch your money. Think about a vacation you want to take this summer or a new house you’ve had your eye on. • Keep track of where your money goes. And not just a vague idea in your head. Write it down. Keep track of what you spend and where. You may be surprised at unexpected leaks in your expenditures. • Don’t eat out. Many families are getting into the habit of eating out every night. Limit your family to one dinner out a month. Eat dinner and home and take your lunch to work. This can save hundreds of dollars a month. • Be careful when you shop. Don’t do grocery shopping when you are hungry and, ladies, don’t go shopping when you are depressed. Always make a list and stick to it. • Direct deposit some of your paycheck into savings. Check with your employer to see if this option is available to you. It is much easier to save when it is an automatic withdrawal from your paycheck before you get it. • Sell something you don’t want or use. Do you have an extra car sitting around that some day you are going to fix? Or that camper out back just in case you ever change your mind and decide you like camping? Give Ebay a try, or even the local classifieds. One man’s junk is always another man’s treasure, and it doesn’t hurt that you can make money off the deal. • Get a second job. If you still can’t escape the cycle of paycheck to paycheck living, try working a second job for a while. It is no fun, but the extra cash will really help you meet your goal. […]
May 9th, 2006 at 6:37 pm
[…] I won’t deny it, my parents were not the best teachers when it came to financial preparedness. In fact, growing up I watched them use the credit card for everything. Of course they owned a business and if you are an owner of a business you would know that a credit card is a bare necessity; however, in my home, a credit card was used for absolutely everything. There was no encouraging of putting money in a savings or investing in a bond, mutual fund, or CD. Budgeting is a word I learned on my own after I moved out and found an excessive amount of debt that had somehow accumulated in the balance of my credit card and saw no possible way to pay it off with the wage I was making. I do have to give them some credit for putting such a big emphasis on getting a real job at the age of 14 to purchase the things that I would need or want in hopes to teach me responsibility, however, the education on properly saving and investing my money was never given to me. […]