How do you set up a budget and stick to it?

Question

In this crazy world (don't lecture me unless you're rich)
every penny truly does count, what with rent, car payment, car insurance, phone bill, excise tax, cable, and other amentities.......not including student loans or even credit card bills, even making considerable average or decent salary full time doesn't ensure you'll have much to save or to use as discrectionary.

I want to budget, only thing is I get paid only twice a month.

I want to get a part time job but what places will allow a 27 year old to work 15 hours per week? Don't say restaurant....

I work hard at my full time job......so no patronizing responses from you "I grew up fast when I was 16" crap.

Thank you.

Answer 1

The most difficult part is sticking to the budget. Anyone can create a good budget. How my wife and I create and stick to our budget is as follows.

Cretation
1. Figure out your total recurring expenses (home, bills, student loans anything that happens every month)
2. Divide the above by the number of paycheck you receive
3. The amount left over then needs to be divide up into 3 subcategories: Food, gas, and entertainment. These are never equal. Typically Gas is the biggest of the three with Food second and if anything is left it goes into entertainment.
4. Divide the amounts in Food, Gas and Entertainment in half. This is your weekly budget.
5. Get a whiteboard. Preferably one with some kind of division on it.
6. Write down the totals that you get every week for Gas Food, and entertainment. Also write down what you set aside each paycheck for bills.
7. Get a money managment software, quickbooks is what we use.
8. On the whiteboard every time you spend money that comes out of your bank account remove it from food, gas, entertainment or bills. .Whichever is appropriate.
9. On the board write down the amount you spent and where you spent it.
10. Once a week download your account informantion from your bank, import it into qickbooks or whatever else you used and erase the items that have cleared from the board.
11. If you miss something then remove the amount you forgot form the board.

Couple of tips.
NO CASH TRANSACTIONS. If you follow this rule then you will always have the exact amount you spent listed in your bank account.
KEEP THE BOARD ON A WALL YOU SEE A LOT. Ours is in the dinning room and previously was in the living room. Even when friends came over it was right out in the open. By doing this you will follow your budget better because the money you have will be right there where you can see it.

This system has worked for my wife and I for 7 years now. When mortgage, car payments, student loan payments are due we can just pay them without any worries as the money is just wating in the bank.

Good luck.

Answer 2

I make around $1425 a month and this is how my budget stacks up:

$640 - rent
$85 - cable/internet
$75 - power
$100 - car payment
$61 - insurance
$50 - gas
$55 - cell phone
$70 - food
$75- credit card

Total: $1211
Remaining: $214 (sometimes more, often less)

I get paid bi-weekly and often have miscellaneous things come up that drain my account. However, on my minimal income I have made it work well for me. I struggle some but I've managed to balance things out to where I end up in the black rather than the red. And mind you, I am in a single income household (i.e. ME).

Trim the fat, decide what you do and don't need, reduce your plans (e.g. cell phone, cable/internet) if you don't use them much, do all your errands in one day to reduce gas, buy more generic items when shopping, turn off everything not in use when at home, and simply learn to save where you can. You can come out ahead if you try hard enough and without looking for a second job. I work hard too so I know how you feel.

You'll be fine once you get a budget in order and stick to it. You'll find you likely won't need that second job once you reduce and budget.

EDIT:

Dude, what the hell did I get a thumbs down for? I'm 26 and have my sh*t together more than this braindead whiny guy.

Answer 3

You set up a budget by writing down what you will do with EVERY PENNY you receive for the month. Even "blow" or "mad" money goes on the list. That list IS a budget.

Sticking to the budget is a matter of JUST DO IT. You don't spend a penny if it is not in the budget. The envelope system helps. Label an envelope for each budget item. Put the budgeted amount of CASH in the envelope. When the envelope is empty, you can't spend in that category for the rest of the month. If absolutely necessary, you can DELIBERATELY transfer money from another category.

If you are married, BOTH spouses must agree to the original budget AND any transfers BEFORE the fact.

Answer 4

I get paid biweekly too, so you can't use that excuse. To be honest, budgeting is hard (most of us are not taught how to do it in school)... I'm still learning and I goof up from time to time... we all do. The trick is, don't give up! Keep doing it until you learn it. It's well worth it.

car payments are one BIG reason most of use are broke and struggling with money... another reason is we don't save. Oh, and credit cards are also a BIG reason people are b.r.o.k.e.

try using this... this should help.

http://www.gazelleintense.com/pdfs/monthly_cash_flow.pdf

the trick is the spend less than you make... and get out of debt... having no payments is your goal.... with no payments (car, cable, credit card, etc) something odd happens; You have MONEY. Cash...

If you are spending more than you make, you need to make some decisions... to reduce bills, expenses... ditch the cell phone, cable.... eating out... shopping new and paying retail... working another job of course...

I wont lecture you, I still struggle with this stuff, but I am learning and making progress.

Answer 5

first i would see, where in your life you can cut back.

like groceries instead of buying name brand, buy store brand products and use coupons when necessary. grocery shop for like two weeks at a time, instead of week or day by day. make a menu and buy the items you would need for that time

try spend less weekend out (if you do that), limit it to once a month. dry cleaning, maybe wash clothes on delicate and hang dry.

rent somewhere that is affordable and reasonable or get a roommate.

pack a lunch instead of buying it.

gas (in CALIFORNIA) is ridiculous, so i would limit my driving around or giving people rides (with a deposit on gas).
or carpool to save money.

ummm, add up all your expenses for the month. and say you get like 2700 a month after taxes --- and your expenses are about 2000 a month. that leaves 700 dollars. okay this is where self control comes in. out of that 700, say you are going to only spend 300 out of that 700 and put, 400 in a savings account. you cannot touch it under any circumstance unless it is an extreme emergency. then say at the end of the month you have any money left over from that 300 dollar allowance, you have to deposit that into your savings account. and start all over for the next month.

i tell you it is hard in the beginning and you feel like a tight wad, but after a while you will like it.

trust me it works.

Answer 6

hi,as u said everything is being counted in this word bcz of one main reason ,just keep in mind this term "a dollar today has more value than a dollar tmr'' in the view of finance we call it ''time line' 'bcz of imposing interest on it so a dollar today has less value than yesterday and has more value than tmr that is the fundamental way any firms and business assume,...
so according to your limitation ,dont u ever try any credit card or loan or ....bcz you can not keep up with them ,day after day u ll get poorer.....the most important thing u need to first estimate and then manage your COSTS that is the key.....then u can save and after that try to put interest on your saving and wait till u can satisfy with that....interest is compunding .......so in the long run u can see a considerable growth..........about the details u need to investigate .......the best of luck to u,,,

Answer 7

Check out http://www.expenseregister.com . This is a free personal budgeting/expense tracking tool. It lets you create a budget and tells you how much money you spend from each budgeted category. It has other tools too and all free, but I will let you explore them.

Answer 8

Read, educate yourself, move to a cheaper place/city

In six months, be the person who is answering this question, not the one asking it. And check out the blog below.

Stay disciplined - it will be you most important asset

Answer 9

Go to these two websites:

www.daveramsey.com
www.crown.org

You can download free, their budget forms, plus read some of their "how to" ideas. Both of these sites are available to anyone, though both are based upon Christian principles.

Getting over your head in debt is easy; getting out is tough. I wish you all the discipline and luck.