Budgeting Your Money

Setting up and living on your budget can be hard to do if you like to spend your money as soon as you get it. The same can be said for those who are really good about saving their money. Living on a budget doesn’t mean that you are denying yourself of the good things in life; it’s more about setting yourself up to be able to afford the better things in life all the while you are paying your bills. Being able to live within your budget, being responsible with your spending and your saving and still have a good time is all a part of being independent. Your main goals with having a budget it that you can buy all of your necessities and pay all your bills, while building your savings and being completely aware of where your money goes every month. How do you spend your money? First you need to figure out what kind of spender/saver you are. Are you an emotional shopper? Do you squirrel every last penny away? Does your closet only consist of designer labels? Do you only shop at the super discount stores? Or is having a savings account something completely foreign to you? The less you are concerned about your money and spending habits, the harder it will be for you to create and stick to your budget. The flip side to that coin is that if you are overly concerned and super tight with your saving, you can fall into the trap of putting yourself on the back burner all the time. Time to figure out the numbers Next, sit down and write every single way you have money coming in every month. You need to have these numbers as accurate as possible because this is what you will be living off of. Yes, this might be a little scary and a little depressing but you are empowering yourself with the knowledge to better take care of yourself. So, do you get tips? Write it down. Do you work two jobs? Write it down. Do you make money being a part-time freelance writer? Write it down. Write down every single source you get money from every month without fail … interest from savings accounts, unemployment, financial aid … everything. Some would suggest that you include your birthday and Christmas money. We wouldn’t because you don’t get that money every month. Now, write down all your basic monthly living expenses. List all your bills (rent, utilities, cell phone, car, insurance, etc.), how much money you spend on groceries, how much you spend on gas or other transportation, how much you spend on lunch when you’re at work. Add up that number and divide by four (the four is based on how often you get paid, so if you get paid bi-weekly then divide by two). Take that amount from every paycheck and put it into another bank account (you can set that up with your bank and have your two accounts linked together). This way you will always have the money to fully cover your bills. Pull that money aside as soon as you get paid, that way you won’t be tempted to spend it. Now that's taken care of ... All the money that is left over is yours to spend how you want; however, you should put some of that left over money into your savings account for your unexpected expenses. Try to stay away from using credit cards. If you have to use them, use them only for emergencies. Follow these tips and exercise a little self-control and you will be able to stick to your budget.