Create a Budget You Can Stick With

Create a Budget You Can Stick With

How to create a budget.

A budget is one of the backbones of a healthy financial life. Having one sets you up for financial success. Here are some steps to creating a budget you can stick with.

Start With a List

Make a list of all your bills and expenses, including monthly bills and monthly expenses.

Fixed expenses. Your fixed expenses will likely include things like:

  • Rent/Mortgage
  • Cell phone bills
  • Health insurance
  • Some debt

Variable expenses. When you think of expenses that may vary every month, these are variable expenses. It includes things like:

  • Groceries
  • Gas
  • Entertainment

You also want to make a section for savings. Make sure you are tracking how much each costs per month. Track how much you want to save each month too.

Consider Income

Now that you know how much you’re spending each month, look at how much you’re bringing in each month. This is easy — just log into your bank or credit union account to see what your direct deposit totals each month.

Do The Math

Your budget now depends on some simple math. Subtract your monthly bills and expenses from how much money you’re bringing in each month. Make sure that you have enough money left over to cover discretionary spending. 

Do One Thing: Make sure you review your budget every year or every six months so that your finances remain in order.

Chris O'Shea

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