Most people hate creating budgets but if you want to get a grip on your finances you need a budget. The good news is budgets are like diets! You can choose the best one for you!
You can create a budget in 15 minutes. It really is that easy. Grab your bank statements, credit card statements, or copies of your last month’s bills and let’s get started.
There are only two steps:
First, track your income. Sources of income include, but are not limited to, full-time employment, child support, alimony, Social Security, retirement, etc.
Second, track your expenses. Start listing your mandatory bills, such as housings costs, transportation costs, debts (loans and credit cards too), savings, utilities, food, entertainment, clothing, gifts and holidays.
Every week. Spend about 15 minutes every week comparing your budget to actual costs so that next month, your budget will be a little closer to your actual spending. If you hit your financial goal this month, then do a little dance and celebrate!