Content Overview
- Summary
- Step 1. Find Out What Your Spending Patterns Are
- Step 2. Break Your Expenses Down By Core Expenses (Expenses You Can't Do Without), Discretionary Expenses And Unnecessary Expenses:
- Step 3. Consider Whether There Are Ways To Spend Less For The Things You Need
- Step 4. Think About Your Goals For Your Money
- Step 5. Set Flexible Rules For A Budget That Fits Your Circumstances
- Step 6. Create The Budget
- Step 7. Give The Budget A Trial Period By Using Apps Or An Envelope To Help Keep Track
- Step 8. Tweak The Budget As Time Goes Along
Budget: Creating/Living With
Step 6. Create The Budget
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You'll see that our chart -- Budget -- incorporates the above ideas. If you want a more sophisticated budget tool that can link to your financial accounts and other tools to help keep track of your net worth, see sites such as www.mint.com
If after completing your budget your spending exceeds your income, review your expenses to see what you can do without - at least for the time being. As an alternative, try cutting back on all your expenses by, say, 10%. It may show you where you can get by with less.
If you can't get the numbers to work, speak with a friend who is good at finance, or hire a financial advisor. To learn more, see Financial Planner.
Click here to see our Budget.
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