Budgeting
Creating A Budget
Creating a budget is a firm way to take control of your money. With a budget, you are able to tell your money exactly where to go, rather than looking back and wondering where it went.
Budgeting does not have to be an intimidating task.Conversely, it is a NECESSARY activity for individuals and families.
So this is where the question arises: “Where do I start?”
I am SOOOO glad you took the time to stop here and take the first step in becoming the master of your money.
Write It Down.
Write Down Your Total After-Tax Income.
This is amount of money you bring home from your job, self-employment income, side hustles, etc.
List It.
List ALL Your Expenses.
This is amount of money you bring home from your job, self-employment income, side hustles, etc.
Expenses should include your regular expenses (mortgage, utilities, car note, etc) and your irregular expenses (home repairs, insurances, homeowner’s association dues, lawn care, etc) that are due in the upcoming period.
ALL expenses should be accounted for, including food, entertainment, and gas. This should also include your savings and investments as well.
Bottom Line
Your Bottom Line Should Be Zero.
Zero-based budgeting means that your income minus your expenses should equal zero. This does NOT mean you are broke or that you spent your entire paycheck. What it does mean is that you know WHERE all your money is going. It means you are in control and that your are telling your money exactly where it needs to go.
Track It.
Track Your Expenses.
This step will ensure you’re sticking to your budget. Hold yourself accountable and stick to the plan. This can also help you figure out what expenses can be cut from the budget.