Budgeting For Beginners

Want to get started with a budget but aren’t sure how? I’ve got an easy-to-follow process to help you get started.

Determine your income.
Track your spending.
Set a budget.
Stick to your budget!
Automate your savings!
Review and adjust your budget regularly.
Use tools and apps to help you improve your budget.

1. Determine Your Income

Start by figuring out how much money you bring in each month, including your salary, any side income, and any other sources of funds. It must be a reliable source of income, so don’t count something like money you get for your birthday or another holiday!

2. Track Your Spending

Keep track of your monthly expenses, including bills, food, entertainment, and other purchases. This will give you a good idea of where your money is going and where you can make changes to reduce expenses. This may seem tedious, but if you pay for many expenses by debit or credit, you can check online to find details about most of your bills.

3. Set A Budget

Based on your income and expenses, create a budget that allocates your money to different categories, such as housing, food, transportation, and entertainment. Ensure the amount you spend in each category doesn’t exceed the available amount.

4. Stick To Your Budget!

Once you have a budget in place, it’s essential to stick to it. Avoid overspending by making a conscious effort to live within your means and avoid impulse purchases. This can mean saying “No” to some invitations or finding a less expensive way to entertain yourself or your guests!

5. Automate Your Savings

Consider setting up automatic transfers from your checking account to a savings account. This can help you save money each month without thinking about it. You’ll still have access to the money in an emergency, but you’ll be less likely to spend it mindlessly.

6. Review And Adjust Your Budget Regularly

Your financial situation may change over time, so you must regularly review your budget and adjust as needed. This could mean reducing spending in some categories and increasing it in others. This is a crucial step to ensure that your budget remains something that helps you live within your means without requiring you to live within unrealistic limits.

7. Use Tools And Apps To Improve Your Budget

Many tools and apps can help you manage your budget, track your spending, and reach your financial goals. Consider using one of these resources to help you stay on track. It can be handy to be able to quickly and efficiently track data either via your computer or via your phone!