Making a Budget: The Basic Steps
If you want to start living a more frugal life, you will need to start the process by doing some important planning. The most important part of planning for your finances is making a solid budget. Regardless of how much you make, how you make it, and how much you have now, you can make a budget that will work for you. Consider the following steps that will help you take the first step to a thriftier lifestyle: making a budget.
1. Keep track of your spending. You need to know what your current spending habits are before you can adjust them by means of a budget. Bring a small notepad with you wherever you go and note how much you spend every time you make a purchase. That way you can track your spending.
2. Make a list of all your expenses and include the spending you have in your notebook along with any monthly bills that you might not have written down. Total up the categories that you have and the total spending as well.
3. Write down how much money you make and how often you receive it, whether that be on a weekly, bi-weekly, or monthly basis. Then total up how much you earn.
4. Based off of the information you have gathered during the last month, make a budget. Once you have it written out, compare it to your total income and make any necessary adjustments so that your income is more than your budget is, either spending less or making more money.
5. Study your budget and even take a few days to really think about the items you have listed there. Make better choices. If you only watch your television once a week then cancel your cable. Save that money for something else. If you have so many clothes that you can't open your closet then determine to pass on the shopping for a while. Decide to choose a future instead of a fleeting present.
6. After you have cut all that you can cut, review your budget balances. If there is still a deficit, it's time to consider a second job (or a job change). The only way to balance a budget (and start saving money) is to bring in more than you spend.
7. Review your budget. Since our lives are in a constant state of flux, your budget will no doubt need to be adjusted from time to time. As your lifestyle gets progressively more frugal, you may notice more expenses that can be cut.
If you want to live a frugal life then it is important to understand your spending and learn to get it under control. Setting up a budget is a first step towards that prosperous way of life.
1. Keep track of your spending. You need to know what your current spending habits are before you can adjust them by means of a budget. Bring a small notepad with you wherever you go and note how much you spend every time you make a purchase. That way you can track your spending.
2. Make a list of all your expenses and include the spending you have in your notebook along with any monthly bills that you might not have written down. Total up the categories that you have and the total spending as well.
3. Write down how much money you make and how often you receive it, whether that be on a weekly, bi-weekly, or monthly basis. Then total up how much you earn.
4. Based off of the information you have gathered during the last month, make a budget. Once you have it written out, compare it to your total income and make any necessary adjustments so that your income is more than your budget is, either spending less or making more money.
5. Study your budget and even take a few days to really think about the items you have listed there. Make better choices. If you only watch your television once a week then cancel your cable. Save that money for something else. If you have so many clothes that you can't open your closet then determine to pass on the shopping for a while. Decide to choose a future instead of a fleeting present.
6. After you have cut all that you can cut, review your budget balances. If there is still a deficit, it's time to consider a second job (or a job change). The only way to balance a budget (and start saving money) is to bring in more than you spend.
7. Review your budget. Since our lives are in a constant state of flux, your budget will no doubt need to be adjusted from time to time. As your lifestyle gets progressively more frugal, you may notice more expenses that can be cut.
If you want to live a frugal life then it is important to understand your spending and learn to get it under control. Setting up a budget is a first step towards that prosperous way of life.
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