![]() Once you start looking into your expenses, you may find that you’re spending more on certain areas than you need to.įor instance, if you’re spending $30 every Friday night going out to eat, try cutting back to every other week. Step 4: Move money aroundīy having a personal budget and thinking about where your money is going, you can start making changes your wallet will thank you for. Set aside a portion of your income for your own interests and wants and stick with it. You may want a new pair of shoes… or you may need one. Sometimes, there’s a fine line between wants and needs. Common household items – cleaning supplies, toilet paper, lightbulbs, etc.Subscriptions to 3 different streaming services (maybe that’s just me?).The latest gadgets – phone, computer, etc.There’s a good chance you’ll find an unexpected opportunity for savings by doing this. Now that you know your monthly expenses, it’s time to separate them based on wants and needs. Once you’ve calculated your expenses, add everything together to get your total. Examples include:Ĭertain expenses – like utilities and credit card payments – can count as either fixed or variable, depending on your usage and their rates. Variable expenses are things that can change on a weekly or monthly basis. Insurance (car, home, renter’s, health).Now that you know your total monthly income, it’s time to calculate your fixed and variable expenses.įixed expenses include anything that doesn’t change from month to month. It’s always nice to have some wiggle room! I’d recommend going with the second option. ![]() If that sounds like you, you can either average out the previous 3+ months’ earnings or base your budget on the lowest amount. For some, this amount fluctuates from month to month. Make a list of all the ways you make money each month. This includes anything that contributes to your available funds each month: Start by figuring out your total monthly income. In fact, you can get started right now by following these 5 steps. Making a personal budget doesn’t have to be hard. The good news is, even if you’re making minimum wage, you can still benefit from having a personal budget.Īre you ready to get started? 5 Simple Steps to Make a Personal Budget If you want to start investing in your future, you need a personal budget. If you’re ready to pay off that credit card or loan once and for all, you need to be in control of your money. And any time your bills increase, or a financial emergency happens, you’ll be unprepared for it. Otherwise, those credit card statements will keep coming – and possibly increasing. Eventually, you need to keep track of where your money is going. Living without control of your money gets old. The first few years of my adult life pretty much consisted of making money, paying bills, and going out on weekends.īut without a personal budget, I was never able to save money or get rid of debt. In fact, I didn’t have much of a financial plan beyond making sure I could pay my bills and the minimums on my credit cards. ![]() I didn’t have a personal budget until I was in my 20’s. Without further ado, here is everything you need to know how you can make a personal budget so that you can start paying down debt! How to Make a Personal Budget Our last guest post was on How to Maximize Your Freedom, Even in a Downturn! by Matt from Millennial Mutiny. This is Cash for Kat’s 5th guest post! If you would like to start at the beginning, check out Zero to Full-Time Income by Kathrin from A Chat with Kat. How to Make a Personal Budget (& Pay Down Debt!), is our guest post for January by Angela Watson from The Coin Savvy Aunt!
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