A budget is a way of keeping track of what you spend and where your money goes. This can keep you from overspending on extra items and help you save more money for the future. Creating a budget is a very economical way to handle your money, as well. You don’t need fancy spread sheets or an accountant. All you need is your current bills, pay stubs and an idea of how much you want to save.
Step 1
Write down the total due on each of your bills onto your piece of paper with a note about what the bill is for. Exclude any late fees since you are just trying to get a feel for what your bills are on a monthly basis. Besides, with a budget you shouldn’t have any late bills from now on since you are setting aside money for each bill with your budget.
Step 2
Add your bill totals together and write the number on your sheet. Write a note beside the number noting that it is the total bill sum.
Step 3
Write down the amount of money you spend every month on extras such as bus fare, gas for the car, child support, eating out, clothes and movies.
Step 4
Take a look at a month’s worth of pay stubs. Add up your take-home pay for the month and write it on your sheet. Add to it any other regular income that your household has to come up with your total monthly income.
Step 5
Add up your bills and extra expenses and subtract that number from the income amount. The leftover amount is what you can put into a savings account every month.
Step 6
Adjust your spending if you have no money left over or if the number is negative. Look at your list and find bills or expenses you can cut from the list, such as canceling your cable television or eating out less often.
Warnings
- Avoid spending on new extras without figuring them into your budget.
