how do you plan a budget?

Question

i would like to plan a budget for my household? i do not make much money, so where do i begin?

Answer 1

Make a list of what is absolubtely needes like food, gas, rent, water, gas, and electric expenses. Do not focus on your wants at all. Add them all up and compare to what you make. Think of ways you can cut back on you needs such as public transportation, turning off lights when not needed, store leftovers, get a roomate, and save water. Whatever is left, half should be saved for emergencies or retirement (lol) and the other half can be saved to pay unexpected needs or wants.

Answer 2

You begin by writing down how much you make each day,week, month and year before taxes.

Next you write down all of our current or ongoing expenses for each day, week, month, 6-month, or yearly basis. It depends on the nature of the expense as to when you are billed for it - and you don't want to forget anything. For items billed each 6 months or yearly, you likely should deposit part of the amount into a savings account each month - it will smooth out your budget.

Next write down all of your unmet needs, that you haven't any bills for yet - such as an upcoming car repair, or dental work...something you need, but don't have yet. You need to include things you need long term like retirement planning or health insurance...things like that.

Now you need to decide which expenses are the most important. Give each expense or unmet need a number. Start with 1 for the most important things to you, then 2 for the next most important, and then 3 and so on until each expense or unmet need has a number.

Now at the top of the page write "Don't forget taxes!"

As you read your list of expenses, you will start at 1 and continue. At some point, you will reach a number that represents the limit of your money - each number past that point is going to be something you don't have enough money to get. If the remaining items are too important to do without - then you must find a way to work, borrow, barter, or beg to get those things.

There is a vital difference between a budget, and a list of expenses. It is the same difference between having a map and a list of where you have traveled. It is difficult to make a real, working budget that lists everything I mentioned - partly because it is boring, and partly because you need to use your imagination to plan for expenses that you don't or may not have yet , like future medical expenses that won't be covered by insurance.

If it helps, imagine your household as a business, then you can read books about starting or running a small business and apply them to your household.

When you are done, if you want, you can send your budget to me, and I can look it over for you. If that's something that you think would help.

Answer 3

what i did was on a paper write all your bills. add all the min bal due. over estimate about 5 - 10 each bill. print them in a chart with monthly columns. with the date they are due{go 5 - 8 days before} give time to mail.. start the first second etc till 28. list them down as you pay them check them off hang them where you can see them...
you need to divide the total monthly by 3. put that much a week in your bank...
you will have left over at the end of the month.. with that left over you pay extra on credit cards. not to much...
and don't pay extra for 3 months... then you can.. the money you have can be held in a savings for emergency, medical, and unexpected expense..

You can ask a family member to borrow a months worth of money or even 2 weeks.. in the 3- 4 months you should be able to pay them back..
Pay your bills as soon as they come in or within the week that builds credit, Banks who have free accounts totally free as far as monthly fees go and put that money in a separate account and pay bills only out of there nothing else.. have a separate checking account for extra expense... where you write checks while out of your house... THE bill account do not get a debit card for..write your self a check if you need gas. and put it in the on the go account. soon you will get the hang of it good luck

Answer 4

Living with a budget is like trying to quit smoking. You always look forward to that opportunity when you have that extra money to spend.

Answer 5

Everyone's advice is good, but let me add one more thing. There are some bills that are not due every month (like car insurance). Every month, set aside some money for them. If you have a $600 car insurance bill due every 6 months, set aside $100 every month so you're not in a hole every 6 months.

Answer 6

start with how much you make in a given time frame (weekly or monthly). subtract from that the necessary expenses (rent, utilities, groceries - these may be estimated based on what you are currently spending on average). whatever's left should go into savings to be used in emergencies or for special occassions.

Answer 7

Write down your monthly take home pay.
Then write down all your bills for each month.
Then write down how much you spend on an average for groceries and personal. Decide how much you need to live on with in your monthly salary. Don't spend more than you allow your self.

Answer 8

Start with your fixed expenses, rent, insurance, car payments, etc, then add in your variable expenses, food, phone, entertainment, etc.. Take your net income and deduct the fixed expenses, then deduct the variable expenses, what's remaining? You can then either increase your income or decrease your expenses to meet goals.

Answer 9

I'm not even going to give you advise, cause my bank account has more peaks and valleys than the rockies!