Making and maintaining a budget need is not frightening, alarming, or difficult. I realised this, and I am practicing preparing personal budget since two years. I am successful in doing so and now I could plan my yearly budget also. What you need to know is, planning budget is not an overnight fix and will take time and effort to adjust to. It also takes a few weeks to see results. A budget affects everyone in the family. There may be emergencies or sudden and unexpected expenses at any time.
To plan budget, paper, pencils, and a calculator are required. On one sheet of paper prepare list of your expenses along with the dates each payment is due. It should include Household Expenses like Rent, Utilities, Phone, Insurance, Internet, Car Expenses like Gas, Maintenance, Insurance, Credit Cards expenses like Visa, MasterCard, Medical Expenses like Insurance, Prescriptions, Personal Expenses like Clothing, Schooling, Vacation, Entertainment. On another sheet of paper prepare the same type of columns for your credits or earnings. This should include paychecks, cash in the bank, expected bonuses etc that are considered as a regular income or is cash you already have on hand. Add or total expenses and income separately. Subtract your expenses from income. If the result is positive number, you are in safe state. If the result is negative, then expenses are more than income.
Try to save money, gradually the result becomes positive.
To plan budget, paper, pencils, and a calculator are required. On one sheet of paper prepare list of your expenses along with the dates each payment is due. It should include Household Expenses like Rent, Utilities, Phone, Insurance, Internet, Car Expenses like Gas, Maintenance, Insurance, Credit Cards expenses like Visa, MasterCard, Medical Expenses like Insurance, Prescriptions, Personal Expenses like Clothing, Schooling, Vacation, Entertainment. On another sheet of paper prepare the same type of columns for your credits or earnings. This should include paychecks, cash in the bank, expected bonuses etc that are considered as a regular income or is cash you already have on hand. Add or total expenses and income separately. Subtract your expenses from income. If the result is positive number, you are in safe state. If the result is negative, then expenses are more than income.
Try to save money, gradually the result becomes positive.
