How to Get on a Budget in 3 Easy Steps

 

How to Get on A Budget – Go Time

Deciding how  to get on a budget is one of the smartest financial decisions you can make.  Living on a budget helps you to manage your income and save for the future.  A budget helps you track your income, set limits on your expenses, and make sure you are living within your means.  If you have never managed your funds using a budget, and do not know where to start, this article is for you.  By following these three easy steps, you will learn how to get on a budget.

how to get on a budgetHow to Get On a Budget – Step one – Calculate your income and expenses

How to get on a budget 101 – First, gather all your bills and keep a record of all your expenses.  If money goes out of your wallet or bank account, write it down.  One thing to keep in mind is your credit or debit card.  If you purchase anything with your cards, be sure to write it down and keep a log of that expense.  At the end of one month, add up all your expenses including rent, electric bills, travel expenses, power bills, and personal purchases. If you are employed, see if the expense is less or more than your paycheck.  If you are self-employed, calculate your net income and subtract your expenses from your net income.

How to Get on a Budget – Step two – Create a budget

When first figuring out how to get on a budget, you need yo determine if your expenses exceed your net income. If this is the case, something is wrong and you need to change your lifestyle.  The next step is to categorize your expenses.  First, write down all your priority expenses.  This should include your rent/mortgage payments, utility bills, food, etc.  Then in order from most important to least important, write down the other expenses.   You would be surprised how well you can live with less money when you cut out the frills.  Hot How to Get on A Budget  Tip: always set aside 10% or more of your monthly income for savings.  After several years, you will be glad you did!

How to Get on a Budget – Step three – Live within your budget

This is probably the hardest step to take.  Discovering how to get on a budget is just the beginning.  The hard part is staying within the limits you set for yourself.  If you find yourself wanting to spend money you do not have, on something that you do not need, just remember what is really most important.  Your future success and happiness is the most important thing.  If you keep that in mind, it will help you to live within your budget and manage your funds like a professional! When you decide to learn how to get on a budget, you are truly taking charge of your financial life.

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