Thursday, January 8, 2009

Budget- part 2

As you are writing up your budget for the first time, don't worry about cutting corners. The point of writing out your budget is to find out where your money goes. Write down how much you spend on gas and groceries, household items and going out to eat. Remember to check your bank account ledger and your credit card bills from the last 3 months so you can have a good average. There are several different models of budget-making that you can download from the internet. You can write out the budget the way you want it. Remember, the most important part of a budget is to simply have one, and to keep it.

My method of budget making and keeping is to have a notebook in which I only write out our bi-weekly budget. In the back of the notebook I have a chart that lists all our monthly bills, when they are due, and each month they got paid.

A simple monthly budget is found below:

Monthly Take-Home:



Car Payment:
Phone Bill:
Other (student loan, personal loans, etc)

Household Expenses:
Eating out:

Notice that the budget is in a loose order from most important to least important.

The most responsible thing to do with your money is to tell it where to go, before you even have it. Strive to make your budget before the month or pay period for which it is intended. Make your February budget in January. If you are getting paid the third week of February, make your budget the second week of February. You are not a slave to your money- you are the master of your money!

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