How to Create a Budget
Knowing how to create a budget is important, even essential, for financial success. However, it’s not often taught in high school or even college. Many people begin married life with no concept of balancing the budget, or sticking to a spending plan.
How to Make a Budget presents the basic steps involved in budgeting your money. Rather than repeat the whole article, I’ll simply summarize the steps:
1. Create a list of all set expenses and estimates for groceries, gas and personal.
2. Tally your income, from all sources.
3. Compare the two numbers. If you earn more than you have listed under expenses, allocate the “extra” for savings, investing, and charity. If you have more expenses than income, trim your expenses (or increase income–fast!)
4. Hold a weekly budget meeting with yourself (or your spouse if married) and stay accountable to your spending plan.
As the saying goes … if you fail to plan, you plan to fail. Cliche? Maybe, but with finances as with many other things, it’s true.
Related Posts
Advertise With Us!Grocery Bargains - Food Staple: EggsGrocery Bargains - Food Staple: Ground Beef
. . . . . . . . . .
These are definitely simple and easy steps one can take to gain a control over his money! As always, a thing doesn’t have to be complicated to be useful, isn’t it? … just one has to be aware of it
Thanks!
I do this already, but I find for a lot of people it’s hard to do, and I never really understood why. Thanks for sharing this, because I am sure it will help lots of families in this time of economic hardship.
Thanks for simplifying it. I seems daunting (and maybe depressing?) to have to sit down and write down all your expenses, that’s probably why a lot of folks fear/avoid it. I was great at it when I was single no dependents, but after 9 years of marriage we still haven’t perfected it!