Budgeting 101 Many Americans are caught in the cycle of overspending, the use of credit cards, and, simply put, living from paycheck to paycheck without saving money to secure their future. Reasons ranging from "I want it now" culture that we grew up with, do not know how to make a budget. No matter what your income, so that a realistic budget can help free you from financial worries.
1 Track your spending for a month. This means writing down everything you spend your money, cash, credit, debit, or including your regular bills, mortgage, food, coffee, newspapers, etc. Take a notepad, when you need it. ATM withdrawals should also be included. This step is only necessary precursor and make it easier to create a realistic budget. Organize the categories and calculate totals.
2 List of seasonal, annual, semiannual, quarterly and costs incurred but not paid while you were tracking your spending. This may include taxes, vehicle registration and maintenance, insurance payments, gifts, school activities. Resources, and share the buzz of twelve to come up with your monthly expenses for these items.
3 Add your monthly income (take home pay, not gross income). Do not forget, bonus payments, alimony or child support payments, dividends and interest, or public support. If your net pay is not consistent, the average of the last ten pay periods.
4 Make a list of categories for your expenses. You can do this on paper or on a computer spreadsheet. Be prepared for a long list and use the information that you gathered when you tracked your spending. Typical categories include rent / mortgage, gas, electricity, water, TV, internet, pool supply, waste disposal, food, food, entertainment, club dues, child care, gasoline, hair care and medicine, but the list is endless. Here you will find templates on the Internet, but you should adjust it for your situation.
5 Set column next to the list of categories, one for "projected costs" and more in the coming months.
6 With the numbers you came up with from your monthly tracking and estimated seasonal editions to fill in numbers, amount to the projected monthly expenses at the bottom of the column.
7 Calculate the difference between your planned monthly expenses and your monthly income.
8 If your expenses are more than your income, you will have to cut spending or increase your income.
9 For the monthly columns, continue the recording of the quantities as you pay your bills. If you come up short, you change the projected amount for the category and look for ways to adjust your spending.
Remember, this is a guide to help you control your finances and know what you can afford. If you find that you fall short again and again, you need to look into making more significant changes., How to eliminate as driving an economic car, a car payment. Remember, credit cards are not the right way to work around your budget problems!...
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