What is the best way to budget your monthly money?

Answer 1

1. First decide what your savings/investing goals are.
2. Second, decide how much disposable income you want/need each month for food, gas, shopping, and going out (any and all variable expenses).
3. Then set up your fixed costs (rent, utilities, car payment, etc) so that you can reach both of those goals.
4. Finally, make your bill paying and savings automatic. You can also have your monthly disposable income (same amount each month) transferred automatically to a separate checking account--that way you're never tempted to spend the money that's meant for your rent, debt payments, or savings.

Personally my goal is to save 20% of my income and also have 10% leftover for "fun money" each month. So I make sure that my fixed expenses don't exceed 70% of my income.

Use excel to list all of these things and then play with the numbers until you reach a scenario you like. Start with income, subtract savings, then subtract fixed costs, then see what you have leftover for variable expenses/disposable spending. If you don't have enough, figure out how to lower your fixed costs (not your savings target!).

Answer 2

I personally look after my family budget and all spending items need to be accounted for so that at any point in time you know where you are. Requires discipline but that's the only way.
For example, for a couple about $200 p/w would be an average for food. If you have kids then you need to add at least another $100 p/w per child.
To help you with budgeting I'd recommend a personal finance software by Australian business Parcus Group.
Easy to use program with features including budgeting, financial planning, real estate analysis, shares valuation, life insurance...
Costs US$24 so it's not a huge investment but a good value for money.
You can get it on http://www.parcusgroup.com/index.html

Answer 3

I really am not trying to be patronizing when I say: The rule of thumb for our parents' parents wad to try to 'live below your means'.

Of course, follow all of the good advice about spread sheets, itemizing goals, etc...

But, the number one way of budgeting is realizing that there is so much brainwashing in this country that tells us that we NEED things that are in truth luxuries. Ask yourself the question, "Do I need this, and do I already have something similiar to this?", before every non-food, water and oxygen purchase.

Good Luck

Answer 4

do a spreadsheet on excel with all your outgoings and have a couple of online accounts one for spending and one for bills and make sure on payday you transfer the bills money straight there and don't touch it. Any leftovers divide by 4 for how much you can spend each week.

Answer 5

I was going to give you my way, but that first answer was really good. I may take some hints from that.

Answer 6

Spend little as possible and buy cheap things