Look at your overall monthly expenses.
You will want to review what you are spending money on each month. Add up your grocery bills, daycare, utilities, cell phone bill, mortgage/rent, insurance and so on. This will give you a good basis of what you must have money for each month and it will help you find places to cut. For example, if you realize you’re paying for five different tv subscriptions, you can probably cut 2-3 of those and come out saving some extra cash.
Track your odds and ends expenses.
Now you need to make a list of everything you buy throughout the month – this includes going through the drive-thru for lunch, grabbing a coffee, getting gas, any extra groceries and more. Over a few months, you’ll have a solid average for extra items you need to budget for. Doing this will also help you notice what you are spending your money on and if you can cut that down to save more.
Decide on your financial goals.
What do you want your goals to be financially? Are you saving for retirement, college for kids, a car, down payment or trip? All this needs to be figured into your monthly budget so you can allot the correct amount of money towards your financial goals. Open a savings account to store this money safely as you begin to build your funds.
You will want to budget for your debt payments once the above has all been calculated into the budget. Becoming debt-free is crucial to your financial success. See how much you owe and work on a plan to pay off each debt. You can pay the highest interest debt off first, do the debt snowball method or look up other debt payment strategies that would fit you best. Budgeting paying off more than the minimum each month will help you succeed.
Stick with it and reward yourself.
We know it may be hard to stick with tracking all your expenditures and saving for different financial goals, but don’t give up! Reward yourself when you hit milestones because it’s important to stay excited and motivated about budgeting. Take control of your debt by continuing this each month so you can solidify your financial success!