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Budgeting can be hard. But it doesn’t have to be! If you follow these ten simple steps, you’ll be on your way to having a budget that works for you. You will be able to clearly see all the money coming in and how it is being allocated, without any confusion or stress. And the best part is that these steps are easy — there are no gimmicks or quick fixes here. Just a clear, nine-step process to create a budget that works for you.
Step 1: Determine Your Monthly Income
When starting out your budget, it is very helpful to have an exact idea of your monthly expenses and income. This will help you determine how much money you have left after all expenses are paid. Keep track of all the money coming in through your paycheck, as well as any additional sources of income such as child support, scholarships, or rent from a second home. This will also give you an exact picture of what bills need to be paid each month and what debts you should start paying off first.
Step 2: Determine How Much You Can Save
Once you have an exact idea of what your monthly income is, the next step is to determine how much you can save each month. The amount varies depending on your personal situation, but it usually works out to about 15 percent of your…
