Budgeting Finances

Budgeting your finances is a complicated subject to get into. Everyone has a different way or wanting to find a better one. I am not here to tell you what is best, but this is what I do and it is working for me.

1st: Get all your monthly bills, debt, loans, ect together (paper copy in a binder is great, but also a digital log helps)

2nd: Sit down and seperate all your documents into piles. (Living Expenses, Debt, Loans, Entertainment, Phone, Car, Grocery)

3rd: Make a Log/Spreadsheet of all Living expenses that must be paid every month and how much each are. (These are only the ones you must have ie: Rent/Morgage, Home/Renter Insurance, Water, Gas, Electric)

4th: Make a Log/Spreadsheet of all Car Expenses and how much they are. (Insurance, Gas, Maintaince)

5th: Make a Log/Spreadsheet of all Entertainment Expenses. (TV, Internet, Online Subcriptions, Magazine Subcriptions, Going out to eat, Movies etc.)

6th: Make a Log/Spreadsheet of all Phone Expenses. (Insurance, Bill, Maintaince/trade-in)

7th: Make a Log/Spreadsheet of all Debt/Loans you have include ones in collections or gone to court. Lowest amount ones first.

8th: Make a Log/Spreadsheet of grocery bills, even if you have Food Stamps. (Always good to get the most for your money)

9th: Make sure all Mandatory Living expenses are paid first. Plan which ones come out of which pay check.

10th: Next make sure all care expenses are paid.

11th: Make sure your open debt/loan monthy payments are met.

12th: Make sure phone bills are paid. (try to change to a cheaper package rate if possible)

13th: Plan out grocery costs and put that aside for when you need it. Plan from sale ads and stores you know have a cheaper price.

14th: If after all that you still have money for entertainment, think about what you need and only pay those. Cut costs where you can.

15th: If any money is left then half of that amount goes into savings and the other half goes to paying towards debt/loans/collection debt.

This is what we do. The savings cover any unexpected expenses. Try to always put money aside for extras and emergencies.