The best way to start is to track your spending patterns for a while. A month is a good cycle time. Recored where you spend, how much, and what for. This will give you an idea of what you do with your money. Also write down all of your monthly bills, not the amount but what you must spend such as rent/mortgage, gasoline, food, etc. Then put an estimated amount in. Also record your income, you must balance the 2. Once you put down how much you make, what you NEED to spend, and where you spend, you can develop a plan to reduce or control you optional spending and set goals for what you want to do, save for something, etc. You are on your way to a budget, which after all is nothing more than a general plan.
2007-08-14 06:09:58
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answer #1
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answered by Michael 4
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The first step is to figure out how much money you are bringing into your household. Then figure out where you are spending your money and what your debts are. Then, it is simply a matter of tweaking how much money you spend in each area so that you are living within what you are making. If your current debts make this impossible, you may have to look for temporary supplemental income until your debt is paid off.
Spend your money on paper by planning your budget at the start of each month and stick to it. You should revise your budget monthly to make sure it is always realistic and current. Make sure you put money toward an emergency fund for large, unexpected expenses (such as a car repair or a new appliance) and remember to save up for large annual expenses, such as insurance and property taxes.
You can find good financial planning tools and advice at daveramsey.com.
2007-08-14 06:15:03
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answer #2
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answered by abzolut 3
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Take your bank statement and highlight each item and make different sections. Like groceries, gas, clothes, going out to eat, etc. Whatever fits your lifestyle. See what you spend compared to what you make and at the end of the statement make a total for each and see where your money goes. This will make it easier for you to think before you spend. Go over your total amounts and decide rather you want to spend more or less. Or when it gets hard to stay within your budget think do I want this or NEED this. If you can live without it, its worth the sacrifies.
Example: Total income for the month $2500
Bills & Utilities: $700.00
Groceries: $350.00
Gas: $200.00
Out to Eat: $300.00
Mis.: $200.00
Total $1750.
Left: $750
Budget: I am only going to spend $200 on groceries, I am going to eat out on $150, Mis: 100.00 Save 400. compared to last month.
Make a goal to what you want to save and your budget will help you be self disciplined. Dave Ramsey is a good financial source. Bring a calculator and remember tax!
You can do it.
2007-08-14 06:17:53
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answer #3
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answered by mariaaa 2
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Developing a personal budget can sound like a horrible job. But you can make it pretty easy. First, list your fixed expenses, your rent, and average of your utility bills, your car payments, insurance payments, your IRA contribution, anything you HAVE to pay monthly. If you don't pay your insurance monthly, divide a years payments by 12 and add it to the list. Use your credit card bill or checking account register to come up with a monthly "average" of other costs, gas, food, eating out, etc. and put them in another list, "optional expenses". Be as detailed as you can be. Then look at your monthly TAKE HOME earnings. Once you deduct your expenses from your monthly income you can she what kind of shape you're in. If your monthly bills exceed your income, you need to go back to the optional expenses and see what you can cut out or reduce. If you have to, you may need to look at core items like housing cost, car payments, to see if they can be reduced. Let's hope your income exceeds your expenses. Then you can figure out how much you can put into a no-load mutual fund or other savings plan. You also need to consider a contribution to a savings "slush fund" as a required monthly expense. Once you've got the necessaries sorted out from the discretionary expenditures, you'll be in a great position to figure out where you want to put your money. Please go ahead and do this. I won't lie to you, it is a drag. But the freedom and knowlege of control over your finances is a HUGE bonus to your life.
2007-08-14 06:20:02
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answer #4
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answered by Caper 4
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Income in one column and expenses in the other.
After you see those figures for month or two then start a budget.
If you have debt pay it off with the excess income after you start an emergency fund fof several months worth of expenses.
2007-08-14 06:14:46
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answer #5
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answered by Anonymous
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well, the first step I took was getting a spreadsheet application, lemme tell ya......it helps a whole lot!
2007-08-14 06:13:15
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answer #6
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answered by McAnswer 2
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