This Article is About
money
computer software program
bad habit
necessary evil
managing your money
paycheck
creditor
human nature
groceries
creditors
fingertips
How To Budget Money
Join 1000's of Authors at StreetArticles Today!

How to Budget Money

Managing your money in the form of a budget is a necessary evil. Without knowing how much money you are making and where you are spending it is a recipe for disaster. And when it comes to your finances that disaster is bad credit and ultimately bankruptcy. In deciding how to budget money there are several are several items you have at your fingertips that must be used. And used regularly. Budgeting your money is a habit you must create. It has been said that a bad habit can be broken in 21 days. The same is true of creating a good one. Three weeks to learn how to effectively budget your money is time well spent.

Put Your Paycheck on Hold-It is human nature to spend your hard earned cash as soon as you get paid for your efforts. This is a bad habit that must be broken if you want to successfully make a budget. Do not spend any of your paycheck until you have paid all your creditors and allocated money for other monthly expenditures.

Creditor Paperwork-First things first. All monthly bills must be accounted for. Payments for your mortgage/rent, utilities, car payments, credit cards, insurance, groceries, gas, and entertainment are a good start. Any money spent aside from these bills must also be accounted for. Any money spent on entertainment, shopping, etc. must be kept track of in the form of receipts. Paying on all these accounts is the first thing you do when you get paid. The biggest opportunity you have to cut spending and save money is the receipts you save from entertainment, shopping,etc. Chances are likely that you are spending more in this area than you have to.

Budget Worksheet-The only way you will be able to see where your money is going is to creat a budget worksheet. Whether it is simply on paper or a computer software program, you must be able to track income and spending. Creating and looking at your budget consistently is a habit you must create. It only takes 21 days!

Regular Intervals-This is absolutely key to being able to not only create a budget, but a budget that allows you to see where your money is being spent. Analyzing your budget weekly, bi-weekly, or monthly regularly will work. After you have paid your bills and accounted for all other money you spend, you will see where the money is going. By tracking your expenditures regularly, you will be able to determine two things. One, where you can cut spending, and two, where there are opportunities to put that money you have saved.

Need vs. Want-Spending your money on what you need versus what you want will make or break your budget. This can be a grey area. Everybody has a different idea of what they truly want and truly need. Take a close look at what you are spending after your regular interval obligations have been taken care of. Is that shirt or skirt a need or a want. By continually analyzing your budget, this may be an opportunity to cut spending and use cash elsewhere.

To make a budget and stick to it the ultimate money management technique. This task may seem daunting, but free budget worksheets are readily available to you. Not only will you feel less stress in your life, you will have more money to utilize in a more productive way.


Street Talk

No comments present
You May Also Like
Start A Business With No Money Today
Now is the best time ever to start a business. In fact there has never been a better time. But how do you start a business with no money? Well, thanks to the internet it is now very possible to start a business from your own home without investing a…
By: Craig Dean in  Business  >  Small Business   May 22, 2012  
13
  Likes: 20

The Average American Doesn’t Have Cash - If You Needed Money, What Would You Do?
I know this is going to come as a shock to some people and for others, it is simply a reality. The “average” middle class American stated they would have to sell something in order to come up with $2,000 cash. So, my goal today is to come up with…
By: Kyle in  Business  >  Career Advice   Jun 20, 2011  
39
  Likes: 25

How Do People Make Money Blogging?
For many of the popular blogs online, they’re born out of a sheer passion for the niche the blog owners are involved in. For those with a passion for their interests, other people will begin to follow the blog, hook up with them on social media channels, and follow along…
By: Greg13 in  Internet and Businesses Online  >  Blogging   Aug 20, 2013  
0
  Likes: 1

Lose Weight Not Money
What Americans need is a way to lose weight not money. Wealthy Americans can afford to hire weight coaches, registered dietitians and chefs who can create, monitor, and prepare tailor-made diets. But what about people who live from paycheck to paycheck? These people need a way to lose way to…
By: croninweb in  Health and Fitness  >  Weight Loss   Aug 03, 2013  
1
  Likes: 0

How 2 Make Money Online - Focus
Focus. Fighting obstacles causes unlimited success. Focus in on online communities and forums. This is how you will make money online. Just by focusing in on what you are doing. How to make money online just needs to be broken down into small chucks of tasks that will make this…
  Likes: 11

Make Money Online Right Now
Do you want to make money online right now? Do you think it would be possible? Well, the answer can be yes or no. It's yes if you are willing to act right now. And of course it is no if you just keep on watching things and never try…
By: John Ordway in  Internet and Businesses Online  >  Internet Marketing   Jan 24, 2012  
2
  Likes: 4

Make Money with Photoshop
Are you one of those those who loves to change photo's backgrounds? Making fun of your friends photos by making them look uglier? Or are you one of those who are really artistic in making a simple photo into a very good art using photoshop? I have a good news…
By: chamberlane altatis in  Arts and Entertainment  >  Photography   Jun 30, 2011  
0
  Likes: 8

Start A Business With No Money
Some starving, needful folks thing that it would be wonderful if they could solve their unemployment problem if only they could start a business with no money. Well it is possible. When I was a boy my friend Paul was full of ideas about business and since we had no…
By: John T Jones, Ph.D. in  Business  >  Entrepreneurialism   Jul 04, 2011  
0
  Likes: 3

Blogging Makes Money
A blog makes money online, but will you make money blogging? Many people think that making money with blogs is easy with little or no effort. This is far from the truth. I am going to tell you how to set up a sought after blog that makes money and…
By: Pamela Briggs in  Internet and Businesses Online  >  Blogging   Jan 12, 2012  
4
  Likes: 2

Earn Money With Apps
Phone application’s hit a record 1 billion downloads in the week following Christmas, but with so many out there how do you earn money with apps? Well there are four ways you can earn money with apps, create and sell an app, create an app and attach adverts, create a…
By: Ryan9 in  Communications  >  Mobile Cell Phone Accessories   Jan 24, 2012  
0
  Likes: 0

Make Money Online Training Program
There are two main reasons why people do not make money on the internet. The first reason is people fail to take action. You can talk all day long but one thing has to happen. Take action. Do something that will get you moving in a forward direction. Find out…
  Likes: 6

Your Bank is Taking Your Money
And, yes, you know they are doing it. The obvious question becomes: Why are you letting them take your money? You can potentially save hundreds of dollars each month by not letting them do this. How? By simply changing the way you handle your finances. More specifically, by changing the…
By:  in  Finance  >  Personal Finance   Aug 11, 2011  
0
  Likes: 3

Save Money Canning Your Own Fruit
During canning season, I often spend my weekends picking and home canning fruit. The responses I get from people who hear this vary. Some people have experienced first hand the delicious food preserved through home canning. These people ask questions about where I obtained my fruit, how much did I…
By: AJ in  Finance  >  Budgeting   Mar 16, 2012  
7
  Likes: 3

Essential Regulations to Manage Forex Money
Be sure that you understand how to manage Forex money regardless of how fortunate you might be, sooner or later you are bound to lose. Only you can decide that how much you afford to lose and if you are capable of starting out again or perhaps not. The key…
By: James Franklen in  Finance  >  Currency Trading   Jun 28, 2013  
0
  Likes: 0

The Easiest Way Make Money Online
There is an old saying that goes, "If you want to catch fish, you have to fish where the fish are." It's clear that the internet has evolved over the years. The users are getting more savvy and the programmers are responding. For instance, take a look at the title…
By: Feemo in  Internet and Businesses Online  >  Blogging   Aug 15, 2013  
1
  Likes: 2

Article Views: 2592    Report this Article