How To Get Started On a Buget

We all know about budgets, right? Everyone says, get on a budget, get on a budget. But sometimes it just doesn't seem that simple. We know businesses are on a budget, individual families are on budget. But how, exactly, do you do a budget? What exactly goes into it?

Do You Need to Be Financially Aware?

A lot of people of people think you have to know a lot or have a lot to manage your money well. That could not be further from the truth. But just like anything else, managing your money well does require a lifestyle change. The first step to that change is to get on a budget.

You need to do a written budget every month, before the month begins. It doesn't do you any good to sit back at the end of the month, look back and say, "Oh my goodness, where has my money gone?" If you sit down, spend a little time at the beginning of the month, then you can tell your money where to go. I promise you, if you just discipline yourself, it's going to go where you tell it to go. So let me just help you out a little bit.

How to Start

Start by making a list of all your recurring monthly expenses and your monthly net income. So write down, how much is your rent or mortgage, how much is utility bill, child care, cost of getting hair and nails done, eating out, getting your car washed, etc. Be sure not to forget to tithe and to save. Then put down how much money you brought home after taxes. So you're going to have your monthly expenses and your monthly net income. If you're unsure of what you've been spending your money on, take a look at your check book register or debit card statement. Just play around with it for a couple of months and see what it looks like.

Next, after you have that, next you are going to assign a dollar amount to each item or category on your list. So at the end of the month, when you have your net income, you subtract your expenses. If there is $10 left, you have to give that $10 a name. So put that $10 back into one of those categories.

During the month, refer to your budget to make sure that you're staying on track. It will also indicate if you are over spending in a certain area.

So again, just give a try for a few months and see how it goes.