Soo, what IS a budget and how do I make one?

Are you a beginner and wondering how to get started with budgeting? Then this blog post is for you! Budgeting can seem like a very daunting task, but it doesn’t have to be. I’m going to give you some tips that will help you get on your feet.

To see the benefits of budgeting, you need to know how it works. Budgeting is a tool that helps you save for your goals and reduce spending on unimportant things. It’s is a skill that can be used to save money, pay off debt, and increase your overall financial wellness. It’s not about depriving yourself; it’s about planning ahead so you can spend within your means. You’ll learn more in this post!

Benefits of having a budget:

• Understanding where every penny goes
• It will be easier for you to live within your means
• Save more money by setting some aside each month

The first step to making a budget is to list all of your monthly expenses. Then, find ways to cut back on non-essential items so you have enough money leftover at the end of the month to put towards savings or other goals like debt repayment or vacation funds. This isn’t an overnight process; building up healthy financial habits takes time and practice, but once these become part of your lifestyle, they will feel much more natural to you.

Not sure where to start with your family budget? It can be pretty intimidating, but don’t worry! I’ve got you covered. Here are two simple steps that will help you get your financial house in order, one step at a time.

Here are some tips that may help you get started:

Tip: Set Goals for Yourself

Set a monthly goal for yourself and stick with it. Knowing where your money goes each month helps you make better choices when spending or saving.

Create a list of all of your expenses, both big and small, so you know exactly how much money is going out each month. This way there won’t be any surprises at the end of the month!

Don’t forget about saving either! It’s important to set aside an amount every month for things such as vacations or emergencies in case the unexpected happens.

Make a list of all of the fixed expenses that you have each month (like rent or mortgage payments, car loans and credit card bills). Add up how much they cost for the year.

Now make another list of all of the variable expenses that you have each month (like groceries, gas and entertainment). Again add up how much they cost for the year; this is called your “annual total.”

Tip: Create a Plan of Action

When starting out it’s helpful to create an actual written down plan of what your monthly spending will look like over the course of three months so that everyone knows what they can expect from each other financially.  This helps eliminate confusion about who owes who how much for what bills, etc.. Going forward if something changes then just adjust accordingly!

How to Create a Monthly Budget

• Set a goal for your budget

  Saving money doesn’t have to be boring. Think of a goal for your budget and try to reach it! It’s important to set a goal for your budget not only because you will have better control over it, but also because setting the right goal is key.

• List all of your income and expenses

  One of the best ways to manage your money is to write down all of your income and expenses. If you don’t, it can be hard to figure out what’s going on.

• Look at how much money you have left over after paying all your bills

  Don’t stress about the money you have left over. Instead, think of it as an opportunity to save!

• Create a list of things that are important to you, then prioritize the items on the list in order of what is most important to you

  It’s important to prioritize the things you do every day. To create a list of things that are most relevant to your life, think about what makes you happy and prioritize those items.

• Make sure there’s enough money left over to pay for everything on the priority list

  If you want to be safe, leave a little extra money. For example, if your list is $60 dollars and you only have $50, that’s not enough money to buy everything on the list. You can trim the budget for an item on your list, but be judicious, you don’t want to cut your grocery budget too low!

Take These Next Steps

• Create a budget that is realistic and achievable, and personalized to fit your needs
• Set up automatic payments on bills online so you don’t have to worry about missing a due date
• Track every penny that comes in and goes out on a spreadsheet or app like Mint
• Look for ways to trim down monthly expenses by cutting back on things like cable TV, eating out, etc
• Find ways to save money at the grocery store
• Pay off debt as soon as possible so you can free up more cash flow each month
• Develop a savings plan for emergencies, retirement, or other goals
• Create an emergency fund to cover unexpected costs
• Re-evaluate your goals every six months, as they may change over time
• Watch for warning signs that indicate you’re not sticking to the plan – if this happens, go back to step one and adjust accordingly!

My favorite part about budgeting is that it’s a lot of self-discovery. You get to figure out what makes you happy and then see how much money you need in order to pay for those things. What are your current goals? Is there something specific that you want more than anything else right now (a new car, the latest tech gadget)? If so, try starting with one or two steps at a time instead of trying to tackle everything all at once.

Sometimes, it seems like an insurmountable task when faced with this many decisions, but when we take them one step at a time, they start feeling easier!

I hope these tips have given you some insight into how to get started with budgeting. That being said, there are always more ways that it can be done better or differently.

What is your budgeting goal?

Let me know in the comments!