Okay, so you want... no... you need, to make a budget. 

The issue is there are multiple ways to do this; you don't

know where to start and you feel overwhelmed. Don’t worry, 

just keep reading and WE'LL HELP YOU GET THROUGH THIS!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A great technique for people who are just getting started is a method called "Zero-Based Budgeting"; this is a very simple process. 

 

The goal is to have a balance of zero dollars after taking all financial responsibilities into account. You’re going to take a sheet of paper (if you’re old school like me) and split it down the middle.

 

Step 1: You’re going to tally up all of your income on the left-hand side; this includes anything that puts your bank account into the black (positive earnings after accounting for all expenses).

 

Step 2: Next, you will tally up all of your expenses on the right-hand side of the paper. Start with food, clothing, shelter, utilities, and transportation.

 

Step 3: Once you’ve done that move onto your other expenses; This can include things like taxes, insurance premiums, and car registration. Make sure that you go through everything. A good way to be thorough is to look at your expenditures on your bank statements and what’s coming out of your account.

 

NOW IT'S TIME TO GET INTO THE MEAT AND POTATOES OF THE BUDGETING PROCESS! (YUMMMMMM...)

 

Step 4: You’re going to subtract your expenses from your income, and your total should be zero. If it’s not then you’re going to have to make adjustments.

(For example, if you have an extra $100 left over from your income, you need to allocate that somewhere. If you don’t then you’ll most likely spend that money carelessly, and it won’t be invested into something that will benefit your future. On the flip side, if you're negative $100 then you need to change something so that you’re at zero dollars. This could be as simple as bringing a lunch to work everyday, or making coffee at home instead of buying it every day. Just think, if you spend $5 on coffee every day, and you work five days a week for four weeks, that’s $100 right there!)

 

ADVICE: when you’re budgeting try to plan ahead of time. You know the holidays are going to require a bit more money for all the gift giving, so plan ahead by increasing the amount of money you’re saving up during the spring and summer. The same goes for anniversaries, birthdays, and vacations. Do your best to be prepared for unexpected expenses.