Connect with us


Tips For Creating A Budget

The first step to managing your finances is to create a budget. The second step is sticking to it. A budget is an essential tool that will help you know exactly where your money goes. It’s easy to spend more money than you realize if you’re not keeping track. Even spending a few dollars here and few there will add up over time.
A budget will help you see where you’re wasting money so you can find ways to cut back and save. Use these tips for creating a budget to help you get and keep your finances on track.

List Your Expenses

Make a complete list of your expenses. You have to know what you owe each month before you can make a budget so add in everything you can think of. This includes everything that you spend money on, not just your bills. For example, if you give your kids $10 a week allowance, it needs to be added to the list.

It’s very easy to miss things when making a budget, so give yourself some time and don’t get upset if you miss something at first. It can take two or three months before you can account for everything you spend.


The next thing you need to do is put your expenses in order of importance. A good place to start is with your mortgage or rent followed by utilities, food, vehicle and any other living expenses that you have. Next, add in your everyday expenses. This includes things like lunch money, bus fare, gasoline and those miscellaneous items that may not seem important. Even if you only spend $5 a day on a cup of coffee and a snack, it needs to be added.
The next thing on the list needs to be the emergency fund to take care of those extra expenses that catch you off guard. For example, you may run over a nail and need to replace your car tire or you may need to replace your child’s glasses because they got broke accidently.

Don’t Forget the Entertainment

Don’t forget to add some money in the budget for entertainment. If you try to live on a budget where there is no room for fun, you’re going to end up breaking it before long. It can get very stressful to only work and pay bills. When you don’t allow for a little self-indulgence once in awhile, you could end up in worse shape financially than you were to begin with, if you end up going on a spending splurge.

Save Up for Expensive Items

Every now and then, you need a new TV or even a new car. Instead of going in debt for these expensive items, save up for them. Decide how much money you’re willing to spend for the new item. Then determine how much you would need to save each payday to be able to buy the item in a reasonable amount of time. Then add that money to your budget.

Cut Back Where You Can

After creating your budget, you may realize that your expenses are more than your income. When this happens, you have to look for ways to cut back. Cutting back does require that you know the difference between your wants and your needs.
Sometimes, when you get used to a certain way of life, it can be hard to cut back but if you look hard enough, you can usually find places where you can make changes. Perhaps you can lower the minutes on your phone plan or change your cable package back to the basic package. You may have to make sacrifices now to have more in the future.
Creating a budget is the best way to keep your finances on the right track so you can pay your bills, buy those luxuries that make your happy and save for the future. If you have a tendency of breaking your budget, don’t give up. As soon as you realize you’re spending more than you should, re-evaluate your finances, create a new budget and start again. Being persistent will pay off.
Creating and maintaining a household budget is an important task for proper financial planning. Lisa Mason is a mom to 5 and understands the important of financial planning and financial investment advice like that from JSK Associates.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Recent Posts

Business3 days ago

Why Is Quantity Surveying Essential in Construction Industry

Quantity surveying is an essential part of the Australian construction industry. It is the process of calculating and estimating the...

Home Improvement5 days ago

How to Maintain Upholstered Furniture

No matter if you have pets or kids, maintaining your upholstered furniture is quite a challenge. Even though vacuuming it...

Business1 week ago

How Do I Find a Good Developer?

Finding a good bubble developer to help build your app or digital product can seem challenging. How can you choose...

Home Improvement2 weeks ago

When is a right time for home repairs?

Summer is a popular time for a renovation around the globe. While it is true that bright days and warm...

Top Alteryx Competitors Top Alteryx Competitors
Tech4 weeks ago

Top 15 Alteryx Competitors

The world has seen a tremendous rise in startups and new incorporations in the business world. Companies have great potential...

Lifestyle1 month ago

Latest Wedding Trends for 2023

If you’re planning on getting married this year, chances are you’re probably overwhelmed and confused when it comes to wedding...

Lifestyle1 month ago

Tips To Make The Most Of Your City Break In London!

London is one of the best cities in the world, known for its quintessentially British culture, great nightlife, fantastic museums...

General1 month ago

The Ultimate Guide To Packing For A Trip To London

London is one of the best cities in the world, known for it’s rich history, quintessentially British culture, the best...

Tech2 months ago

Top 15 Web Development IDEs

The web development field has seen sustainable growth throughout the years. As technology is advancing, so is the web development...

devops devops
Tech2 months ago

12 Key DevOps Programming Languages to Still Popular in 2022

“DevOps is not a goal, but a never-ending process of continual improvement.” – Jez Humble Delivering the finest of services...

Entertainment2 months ago

Festival Fashion Style Tips For 2022

Summer is well and truly here and with that comes the festival season! From the biggest stars performing on stage...

Green & Energy2 months ago

4 Tips For Making Your Wardrobe More Sustainable

Everyone is trying to make more of an effort to make their wardrobe more sustainable, but often are unsure where...

General3 months ago

7 tips on how to organize a budget-friendly move

If you are planning a move any time soon, you might be worried about all the expenses that wait for...

Metal Roof Colors Metal Roof Colors
Home Improvement3 months ago

Metal Roof Colors: How to Select the Best Color for a New Roof

Choosing the right type of material for your roof is enough of a hassle already that the question of choosing...

Health3 months ago

Simple Ways To Feel More Confident At The Gym

If you are new to the gym, or you haven’t been in a while, sometimes you might not feel completely...