Tips for Creating Your Budget
- Be realistic in planning your budget and make sure it reflects your current life.
- Create your budget for the entire year.
- Breakdown income and expenses on a monthly basis.
- Identify all income sources for your household.
- Look back at several months of checking account and credit card statements to determine where your money is currently going.
- Calculate your occasional expenses and bills to a monthly number for your budget. For example, $700 for car insurance every six months is equal to $116.66 per month.
- Track how you are doing for a few months and adjust as needed to get a handle on your finances.
Remember, a budget is not about depriving yourself of things you want, it is about managing your money to reach your goals. Prioritize the things important to you.