Budgeting is something which is simple, easy, and extremely hard to do. The act of creating a budget is relatively easy. It is hard to budget, because no one wants to see their money disappear. If we keep a budget, then we are able to control our finances. If we do not, then we float on the tides of fortune and do not know where we stand. If we do not know where we stand, then we can pretend we live in some other world where we have everything we want, that is until everything crashes down.A budget is simply the registering of expected income against expected expenses. When the income is realized the budget is finalized with expenses, and throughout the time between income we should reexamine the budget and make sure that we are still on track.
Start with your expected take home pay and record it under income. I suggest separating your monthly budget into your pay periods for the month. This will let you see how to balance your expenses against income.
Some Budget Tips
- Set aside some money every month for unexpected bills and emergencies.
- Keep expenses below your income.
- Consider using cash instead of credit and debit cards.
Sample Budget Sheet
| Category | Monthly Budgeted Amount | Monthly Actual Amount | Actual/Budget Difference |
| INCOME: | |||
| Salary (self/spouse) After Tax | |||
| Bonuses | |||
| Interest Received | |||
| Investment/Dividend Income | |||
| Miscellaneous (Gifts, garage sale, etc.) | |||
| INCOME SUBTOTAL | |||
| EXPENSES: | |||
| Rent/Mortgage | |||
| Car Payments | |||
| Water/Sewer | |||
| Electricity | |||
| Cable/Internet | |||
| Telephone | |||
| Waste disposal | |||
| Savings | |||
| Debt Payments (credit cards, etc.) | |||
| Household Repairs/Maintenance | |||
| Gasoline | |||
| Auto Repairs/Maintenance/Legal Fees | |||
| Transportation/Commuting (tolls, bus, subway, etc.) |
|||
| Child Care | |||
| Auto Insurance | |||
| Home Owners/Renters Insurance | |||
| Health Insurance | |||
| Entertainment/Recreation | |||
| Food/Groceries (include dining out) | |||
| Household (Toiletries,Cleaning supplies, etc.) | |||
| Health Care (medical/dental/vision) | |||
| Clothing | |||
| Gifts/Donations (Church/Charity) | |||
| School Loan | |||
| Personal Care (Haircuts, salon) | |||
| Vacation, Travel | |||
| Magazines/Newspaper Subscriptions | |||
| Pets | |||
| Miscellaneous Expense | |||
| EXPENSES SUBTOTAL | |||
| Income Minus Expenses |
Making a budget, and sticking to it is good. There is peace in living within your means. When your are on top of your financial situation you know what is coming around the corner, and when life throws you a financial curve ball you can be prepared to adjust your finances to handle it. Some months are better than others with a budget, but with a budget it is easier to ride the rough storms of life.
