Copied From Mommysavers:
Create Your Budget
By now, your budget has practically created itself. To complete your budget, allocate the appropriate amount of money to each category based on the steps above, making sure the right column (expenses) doesn’t exceed the left column (income).
INCOME:
Wages
Overtime
Interest Income
Alimony
Rental Income
Other
EXPENSES:
Mortgage
Insurance
Utilities
Car Payments
Food
Transportation
Clothing
Savings Contributions
Childcare
Recreation and Entertainment
Medical and Dental
Home Maintenance
Vacations
Other
Once you devise your budget, you may find that you’re coming up short of income to cover your expenses. Assign priorities to each thing you’d like to accomplish so that you can make a clear decision about what is most important to you.
Come up with a System to Maintain
The best budgeting system is one that is easy for your family to follow, whether it’s the old-fashioned envelope system or something computer generated. Don’t try to force your family into a system they don’t understand or isn’t easy to use. The biggest key to your success is finding a system that works for you.
Software programs like Quicken or MS Money help make budgeting easy for many families. These programs offer great features that allow you to graph and chart progress; they can even connect with your online banking platforms and help improve your credit score. Chances are there is one pre-loaded on your computer.
If you’re not computer savvy, the envelope system still works for many families today. How it works: Grab an envelope for each category within in your budget. Inside, place the amount of cash that your budget allows each month. Once the cash is gone, you’re done spending.
**Also, I was looking around for a free spreadsheet program and found one at google!**
Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts
Friday, January 16, 2009
Day 17 FTJ Bootcamp Activity
Copied From Mommysavers(I'm loving all the advice):
Avoid Budgeting Mistakes
Now that you’ve got a clear picture what you spend, what you earn, and where you can cut back you can create your budget. When creating a budget, a lot of families make critical mistakes. Don’t set yourself up for failure! Here are some tips to ensure your success:
Pay Yourself
FirstDespite record amounts of disposable income Americans had a negative savings rate in 2005-2006 for the first time since the great depression. Making saving automatic can help you beat the statistics and set aside more of your income for the future. If your employer offers an automatic deposit plan, allocate some of your earnings to go directly into a savings account. If you don’t see it, chances are you won’t miss it. If you don’t pay yourself first, you’re increasing the likelihood that you’ll use that money on other categories.
Build in Wiggle Room
If you’re inflexible when devising your budget, you’re setting yourself up for failure. Allow for a financial cushion in each category so when fluctuations occur you’ll be covered.Budget for Emergencies/Irregular ExpensesEmergencies happen. Cars break down. Kids get sick. People lose jobs. Those are simple facts of life. It’s not a matter of IF they happen -- it’s more of a WHEN. Don’t act like a victim when life happens to you, but instead be prepared. Add a rainy day fund to you budget. If you don’t have one at all, it may help to start out with a goal of having $1,000 set aside. Then, as you build your fund and pay off debt, increase that goal to having three months’ of living expenses set aside. When you’re completely debt free and building up retirement savings as well, increase that goal to six months.
Budget for Irregular Expenses
Even though things like vacations, insurance payments and buying holiday gifts don’t happen every month, include them in your budget as well. Estimate your total yearly expenditure and divide by 12 to come up with your monthly budget.
Build in “Fun Money”
Some of the most successful budgets have a category for “fun money” – money that doesn’t have to be accounted for. It could be cash for sodas/snacks, lunches out, or whatever you want. This category can help prevent you from feeling “trapped” in your budget and having to account for every little expense. How much is in this category is really up to you and should fit your financial situation.
Avoid Budgeting Mistakes
Now that you’ve got a clear picture what you spend, what you earn, and where you can cut back you can create your budget. When creating a budget, a lot of families make critical mistakes. Don’t set yourself up for failure! Here are some tips to ensure your success:
Pay Yourself
FirstDespite record amounts of disposable income Americans had a negative savings rate in 2005-2006 for the first time since the great depression. Making saving automatic can help you beat the statistics and set aside more of your income for the future. If your employer offers an automatic deposit plan, allocate some of your earnings to go directly into a savings account. If you don’t see it, chances are you won’t miss it. If you don’t pay yourself first, you’re increasing the likelihood that you’ll use that money on other categories.
Build in Wiggle Room
If you’re inflexible when devising your budget, you’re setting yourself up for failure. Allow for a financial cushion in each category so when fluctuations occur you’ll be covered.Budget for Emergencies/Irregular ExpensesEmergencies happen. Cars break down. Kids get sick. People lose jobs. Those are simple facts of life. It’s not a matter of IF they happen -- it’s more of a WHEN. Don’t act like a victim when life happens to you, but instead be prepared. Add a rainy day fund to you budget. If you don’t have one at all, it may help to start out with a goal of having $1,000 set aside. Then, as you build your fund and pay off debt, increase that goal to having three months’ of living expenses set aside. When you’re completely debt free and building up retirement savings as well, increase that goal to six months.
Budget for Irregular Expenses
Even though things like vacations, insurance payments and buying holiday gifts don’t happen every month, include them in your budget as well. Estimate your total yearly expenditure and divide by 12 to come up with your monthly budget.
Build in “Fun Money”
Some of the most successful budgets have a category for “fun money” – money that doesn’t have to be accounted for. It could be cash for sodas/snacks, lunches out, or whatever you want. This category can help prevent you from feeling “trapped” in your budget and having to account for every little expense. How much is in this category is really up to you and should fit your financial situation.
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