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How to Build a Monthly Budget

By Edited Nov 13, 2015 0 0

Everyone says it; create a personal budget. Personal budgets can be easy to do at some level, but personal finances requires two things, honesty and discipline. Building a personal budget that works, requires the individual to honest about their spending and remain disciplined at all times. Doing these two things will help lead to personal finance freedom.

Things You Will Need

Being organized.

Step 1

First with any budget be honest about personal expenses and income. Avoid creating a budget that underestimates monthly cost, especially food and gas. These two areas are often much higher than most people realize. Sit down and figure out exactly how much gas and groceries cost each month.

Step 2

List all income that will be coming in. The idea of a budget is to have more coming in than going out. Any extra money that comes in must go into the budget, instead of being used as mad money or for reckless spending. Like all expenses, make sure all income is accounted for.

Step 3

Keep multiple copies of the budget each month in a place everyone can see. Allow spaces for expenses and income to be listed and work to make sure everyone is record spending. This is especially crucial for the first few months, providing real data and allowing for any adjustments to the budget

Step 4

Give the budget at least 3 months before declaring it a failure or success. Economics is fluid, especially expenses which can go up or down very rapidly. Keep good records and after a three months make any changes to the budget or completely disregard it.

Talking about a budget is easy, but keeping to it is another story.

Tips & Warnings

Make sure everyone is involved in creating and keeping the budget.
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