Website design By BotEap.comA budget is simply a spending plan.

Website design By BotEap.comBefore starting any family budget plan, you need to know where your money is being spent. It is a tedious process and can be a real eye opener! Many of us spend with no plan or idea where our money is going. An accurate expense accounting system is the first step in making a budget you can live with.

Website design By BotEap.comTrack your expenses

• A simple and inexpensive method is to buy a small laptop from a dollar store. Save it and record everything you spend. Everything.
• Website design By BotEap.com ATM and debit transactions, and credit card expenses.

• Website design By BotEap.com Use simple spreadsheet software like Microsoft Excel or a paper-based system like BudgetMap to record your expenses.

Website design By BotEap.comCreate a budget

Website design By BotEap.comHaving a budget does NOT mean wasting every penny and doing without it. It’s about making sure your basic needs are being met and that you are fully aware of how much cash you have to splurge.

Website design By BotEap.comAfter keeping track of your expenses, it’s time to start making budget plans.

Website design By BotEap.comBelow are several checklists to assist you in the budgeting process.

Website design By BotEap.comEntry

Website design By BotEap.comInclude all sources of income, such as gross income paychecks, bonus checks, child support or alimony, government checks, retirement, investments, or personal business income.

Website design By BotEap.comRecurring expenses

Website design By BotEap.comThese are some of the common monthly recurring expenses. Together with your expense record, they will help you know that you remembered everything.

Website design By BotEap.comFood, childcare, home insurance, health insurance, car insurance, gas / electric, phone, cell phone, cable / satellite, internet access, monthly prescriptions, water / sewer, garbage service, dining out, lunches school, work lunches (brown bag or restaurant), entertainment and charitable donations. Remember to also include your monthly savings account goal (pay yourself). Don’t skip items like movies or going out to dinner if you know you will continue these activities. Just make sure you stay within what you can afford.

Website design By BotEap.comVariable expends

Website design By BotEap.comThis is a list of expenses that are not monthly. Some examples are: Christmas, other holidays such as Mother’s Day, Father’s Day, etc., birthdays, pet care, personal care (beauty salon, etc.), property tax, income tax, repairs from home, doctor visits and prescriptions, clothing and shoes, school supplies, school tuition or other school expenses.

Website design By BotEap.comLoan expenses

Website design By BotEap.comUnsecured debt

Website design By BotEap.comCredit card debt, school loans, and other unsecured debt

Website design By BotEap.comTo develop your spending plan, income and expenses must be monthly. Take the net amount you get from each source of income and figure out how much you get from this in one year. Now divide this amount by 12 to get your monthly average. Then average all the expenses to a monthly amount.

Website design By BotEap.comNow you have averaged all the things that change from month to month; both your expenses and your income. Now you have a spending plan! You spend according to your plan, not what you have in the bank!

Website design By BotEap.comAs you implement your plan, review and modify your budget. Learn why you want to make planning and spending changes. If you have these goals, making changes won’t feel like you’re giving up what you love.