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.