Budgeting

Budgeting is often the toughest part of personal money management. Having a regular monthly budget laid out will help to keep your bills organized and paid on time, identify where your money is being spent, plan debt-reduction, and keep a regular savings schedule.

The following guidelines will help get your budget started:

1. Identify and gather all bills. List the typical monthly payment and due date for each bill.
2. Identify which bills will be paid by each paycheck, ensuring that all are paid on time.
3. Make a monthly list of your budget, subtracting bill payments from each paycheck. MS Excel is a good tool for entering and tracking your monthly budget. Other helpful tools are Quicken and MS Money. See sample Excel budget here: Sample Budget
4. Add other monthly expenses (gas, food, clothing, entertainment, etc.) to your list. Specify how much you will allow yourself to spend from each paycheck.
5. Be sure to build in specified amount to be put in savings.
6. Mark each budget item as it is paid.
7. Keep a running monthly total of your accumulated savings.
8. Stick to your budget! Adjust your list each month as bills change and debt is paid off.