These expense categories are included in my budget printable: Or you could break down transportation expenses into car payments, gas, insurance, and repairs. For example, you could break down food expenses into groceries and dining out. You may also want to subdivide some of these categories into more specific sub-categories. Transportation costs can also add up quickly, so tracking this category can help you find ways to save money on gas or public transportation fares.įood is another common expense for most people, so tracking this category can help you see where you might be able to cut back on dining out or buying expensive groceries. Housing is one of the biggest expenses for most people, so tracking this category can be especially helpful. Some common expense categories include housing, transportation, food, utilities, debt payments, medical expenses, and discretionary spending. It’s important to be specific when categorizing your expenses, as this will help you see where you are spending the most money. This can be done by creating categories for your monthly budget and tracking each expense as it occurs. When trying to stick to a budget, one of the best ways to do so is by keeping track of your expenses. The Next step for your budget is to chart your expenses Those are some examples, did I miss anything? Consider those items that occur regularly and have a steady payout to calculate your baseline income. Paychecks from your salary or hourly job(s).If you want to be extra conservative in your budget planning, you may wish to go with the lowest salary month as your estimated salary. In this case, it is a good idea to review income over at least 90 days or longer and calculate an average monthly self-employment salary for yourself. I would consider my blogging income in this category, and this is why I track all blogging income and expenses so carefully.Ĭonsider whether you have a steady income or if it varies – chances are it may vary quite a bit if you are not working regular hours or are working on a project basis for clients or brands. This step gets a bit more complicated for those of us self-employed, freelancing, etc. If you have a regular paycheck that is the same each pay period, include one month’s worth of paychecks for yourself, your spouse, and anyone else contributing to the household. Note: just going by hourly wages is not going to give us the exact amount unless your work isn’t withholding anything for your taxes or insurance. This step is easy because I know exactly how much I bring home after all the tax deductions as well as health insurance deductions simply by looking at my paycheck stub. Reviewing all our income streams is a happy step, too, since this is where we collect the rewards of our hard work.Īs a full-time employee, I have a bi-weekly paycheck. The income section is a vital piece in the budgeting equation, as it is important to know the amount of money we are working with each month. What is the first step in making a budget? Look at your Income Sources And see what you’re left with at the end of the month. Think of it as you fill it up with income and pour out expenses. I like to start on a scale that is easier to maintain, so I like to think of my budget as a monthly bucket. Give Me the Workbook! Powered by ConvertKit How to Make a Budget for One Month I'd like to receive the free email course. If you fill this in, you will be marked as a spammer. So let’s dive in and take the first step on a journey to financial awareness with setting up a budget. It also motivates you to perhaps make a few changes or course corrections here and there. When you create a budget for the first time (or even if it has been a while since you revisited your budget), it really opens your eyes to where your money has been going. Yes, it takes willpower to be strict with a budget, but creating a budget in the first place is a vital step. We live in a world surrounded by commercials, and it is no surprise that we are also a world struggling with personal finances.īut baby steps. There’s always something that is getting our attention and wanting us to buy it, take it home, and live with us. Many of us make an attempt at a budget, but then unexpected things creep up or holidays and birthdays happen, and our good intentions go out the window. Learn to make a monthly budget that works! But do you know how to make a monthly budget that works? Here are some tips for personal budget planning. Do you have this problem, too? Why is money so hard to hold onto? It certainly requires being organized, planning ahead, and having a good budget in place. The more you make, the less you seem to keep.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |