How to Create a Budget You Can Live With!

Find out How to create a budget, track your expenses,  eliminate your debt and become a happier less stressed-out person.

I had a hard time with this.  It’s incredible how much you can rack up when you just don’t budget.  If you keep going back to the ATM machine for more money it’s a sure sign you’re not in control of your budget

Keep all your receipts for one month and add them up.  This is a good way to identify how you're spending money now.

See how much you spent all together for that month.  If you spent way too much, it’s best to adopt a budget.

It isn’t always easy or immediately gratifying, but adopting a pay-in-cash lifestyle can save you from falling into a debt trap.

Unless you pay your credit card fully each month and don’t have a balance – pay for your purchases in cash. If you do pay your credit down fully each month, go ahead and pay with a credit card You can gain air miles or points towards freebies.

Do the math when paying with a credit card. The interest will raise the cost of your purchases. Same goes for a line of credit. You have to pay interest on that too.  

How To Create A Budget That Works

Take into consideration fixed expenses first:

  • Rent/mortgage, utilities, car payments or maintenance,etc…, medicine,
  • Then write down what you want to buy a month, shopping for what you need
  • Know the difference between what you need and what you want.  Wait before you buy.  If you don’t change your mind, then go ahead and buy.

This spending plan is a lot like the rocks in the jar system

First put the bigger rocks in the jar (fixed expenses) so you know they will fit

Second the pebbles (what you want and might need, clothing, a steak every now and then etc)

Third the sand (frivolities, books (instead of going to the library, Victoria Secret \lingerie,  restaurants etc..)

That way you can budget for everything and spend on what you need first and what you want second.  

Keep an emergency  fund.  There is always something bound to happen.

Give 10% of your earnings to charity.

 I know a few people who earn more money than I do, and are always into their line of credit. Maybe they never learned how to create a budget?

Going to the  nail salon every week is not a must! Get a friend to paint your nails if you can’t do it yourself. Same goes for coloring your hair, cellphone bills, cable TV, eating out every day. Look at these expenses carefully and shave off what you don’t need.

When you can’t afford it, don’t do it. Isn’t  it better to feel secure rather than stressed out all the time?  I think so, I used to feel so stressed out about money it did in my marriage (but that’s another article).

I must admit, I do get my hair colored at a salon. I use to do it myself but I splurge on this. It’s important to me. Besides I go on Monday when it’s 10% off. AND I get a free cappuccino! Remember also that we can’t always deprive ourselves. I hope this article on how to create a budget helps you start one!

Have a Budgeting Tip to Share?

Do you have a budgeting tip? How do you plan your monthly budget? Share any helpful ideas or questions here.

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