Budgeting

Budgeting is the foundation of money management. It can help you achieve larger goals and give you a feeling of accomplishment.

The most important aspects of budgeting are:

  • Keeping a good record of where you are spending your money
  • Make sure you cover your essential expenses first

Follow these basic tips:

  • Keep a monthly budget in a notebook or on a computer that includes income and bills.
  • Categorize expenses (ie: rent/utilities, food, transportation, entertainment, clothing, etc.)
  • Track expenses daily
  • Keep receipts
  • Put 50% of your remaining income after bills towards savings
  • Have a bank account for savings
  • Compare your costs to your income to see what’s left over

Everyone budgets in a different way. Find what works for you and stick to it.

Sample Budget

MONTHLY INCOME

  • Income (1st job)……………………… $1,105.00
  • Income (2nd job)……………………….. $650.00
  • Other Income………………………………….$0.00

Monthly Income Total ……………..$1755.00

MONTHLY EXPENSES

  • Rent…………………………………………. $600.00
  • Food………………………………………… $150.00
  • Car/Payment……………………………… $220.00
  • Car Insurance……………………………. $110.00
  • Entergy Electric…………………………. $100.00
  • Water………………………………………….. $45.00
  • Internet………………………………………. $65.00
  • Cell Phone…………………………………… $80.00
  • Health Insurance…………………………$79.00
  • Savings……………………………………… $100.00

Monthly Expenses Total……………… $1548.00

Monthly Income Total – Monthly Expenses Total = Monthly Spending Money

$1755.00 – $1548.00 = $206.00

Monthly Spending Money……………… $206.00 

(What’s left over after expenses)

Daily Spending Goal………………………… $6.80 

(Monthly spending money divided by 30)