All In

My adventure as I jump into life all in!!

Budgets, Where To Start?

This post is part of a budgeting series. See All the steps below:

The Other Half of the Budget
The Nitty Gritty
Budget Deficit
Cutting Your Grocery Bill
Keep Those Dollars In Your Pocket
I Need Extra Income
Irregular Incomes

Most people are afraid of budgets, but the truth is: A budget is necessary to being in charge of your finances. Once you decide that you need to write down a budget, how do you do it? I’m here to help! In this series we’ll go over everything from expenses to income to saving for the future. So, what is the first step?

Step 1: Write down all of your expenses.

The first thing you will need to do is write down your expenses for the month. Start with the necessities. List your rent or mortgage payment, insurance (if not deducted from your paycheck) grocery, utilities, and car payment, if you have one. Utilities should include your water bill, electricity bill, propane bill (if your home has propane).

Next, list the rest of your expenses….anywhere that your money goes needs to have a category. Some examples could be your cell phone bill, ‘eat out’ money, student loan payment, gas money, etc. Think of everything you spend money on. If you aren’t sure how much to account for each different category, try to remember how much you spent on that item last month. You can even check your online banking or use your bank statement. Look at last month’s purchases and categorize all purchases. Burger King and Applebee’s will be categorized under “Restaurants”, movie tickets and dvd rentals could be named “entertainment.”

Work on writing down your expenses and come back next week for step 2. Feel free to comment below. What are some of your biggest expenses? How much of your expenses goes towards debt (student loans, car loans, credit cards, etc.)?

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