5 Steps to Create a Budget in 1 Weekend

5 Steps to Create a Budget in 1 Weekend

Budgeting seems tedious, something too complicated that it takes too much time and several years off your life. This is not true though! In fact, you can create a working budget in one weekend. Follow the steps below to get started.

1. Set up a monthly budget system.

List your income and expenses. Check your checking account or credit card statements from the previous month to get accurate numbers. Then, budget for each paycheck.

2. Customize it to meet your financial goals.

Always list the necessities first and put them on top of your budget. The luxuries can come after. But if you want to save more money, look into minimizing luxuries. Cut them out completely if you find yourself overspending. Your budget must balance at the end of every month. If it does not, cut back on expenses.

3. Look for problem areas.

Are you going over budget? Find out what is behind it. Do you spend too much on eating out or impulse purchases? Maybe you need to try a different budgeting system? A simple trick is to stop spending on a category once you used up all your budget for it.

4. Track your daily expenses.

This will allow you to adjust your budget as needed. If you overspend in one category you have to cut spending in another. It is not difficult to transfer money between categories in your budget. But this can only happen if you track your spending.

5. Evaluate and make adjustments for the next month.

Were you able to stick with your budget this month? Most people do a great job on the first month because they are enthusiastic. Many slip off on the second month and so on. Stay on track by looking at your actions and evaluating your budget. You can always adjust it to work for you. The most important step is to try and keep customizing it until you find a budgeting system that works well for your money. Budgeting is not set in stone. It is a practice that you must keep doing in order to get better at it!

Ian Schindler