First Things First
Photo: flickr via electrofantastic
The first thing to do is get a piece of paper or program on the computer such as Microsoft Office. You need to divide your money into categories that will be what dictates where your money goes. None of the sections should be labeled miscellaneous. These categories will need to include a living payment of some sort. One category should be able to have all the utilities such as electricity, water, cable, etc. If you have kids then you should have a category for them. Under the food category you should make sure and split it up into groceries and restaurants. Make sure you always have two categories for you and your spouse if you can afford to do so. Personal items like soap and toilet paper should be in a category as well as a car being in a category. These categories will show you exactly where your money is being spent.
Next Thing
Go through and make sure you know what amount is going to go to bills that can’t be altered in any way. Here is where you want to list things such as phone bills or rent. The budget will do better if you make these rates all unchangeable. Hopefully you will then be able to place money in whatever category needs it. After creating the categories you will put in dollar amounts that you normally spend there. You should record your expenses for a month to figure out where your money is going. The categories will surprise you when you see how much you spend in each one.
Last Thing on the List
The Last thing you have to do is make sure the budget balances out with the amount of money you are going to be making. This may be accomplished by subtracting from other funds such as personal funds. Saving for future emergencies is something do with any extra money at the end of the month. It is very important to actually stick to the budget. You may need to discipline yourself to stop going out to eat once you’ve used up the money in the budget. Disciplining yourself into not buying everything you want will be worth it.
My experience
When I was in college, I struggled just like everyone else. Everything seemed impossible to be paid. I had to figure out how I was going to pay all of my bills and even my tuition and books. I thought I might go hungry after having to pay for all that. So that I could pay for everything, I needed to budget as little money as possible to each category. I needed a new program that I could find and use easily. I know this program created wonders in my lives. A small amount of money somehow paid for everything I needed it to. I use this program even now for my budgeting needs.
