How to Create Your Own Budgeting Plan
Anyone can make a budget, but making one you can live with is where the real challenge comes in. Many people say they know how to handle their expenses but at the end of the month when they have credit card debt and no money to pay it off with the usual result is the need to create a more effective personal budget.
To start planning out your new budget you will need:
- Spending journal
So are you ready to get your personal finances back on track?
Step 1: For one month write down all the cash purchases you have made. No cheating!
Step 2: With the help of your spending journal and your monthly card statements, tally up how much you spent in the past month and subtract it from your monthly net income.
Step 3: List any debts you may have.
TIP: You can find personal finance software online to help you create a budget.
Step 4: If you are spending more than you earn, see where you can cut back. Keep trimming until you have cut back enough until you get to a price that you can afford to spend each month on non-essential items like new clothes and dinners out.
TIP: Don’t forget to include a payment to yourself for savings.
Step 5: Tally up as many annual expenses as you can such as a holiday gift, birthday presents, and even vacations. Divide by 12 and add them under miscellaneous.
To continue on with your personal finance revamp check out the awesome videos above!