How to Master the Art of Keeping a Budget

Step-by-Step Guide

1. 1

   Step 1: Round up every financial statement you have.

   This includes bank statements, investment accounts, recent utility bills and any information regarding a source of income or expense and record all of your avenues of income.
2. 2

   Step 2: Write down a list of all the expected expenses you plan on incurring over the course of a month.

   This includes a mortgage payment, car payments, auto insurance, groceries, utilities, entertainment, dry cleaning, auto insurance, retirement or college savings and everything you spend money on. , They included expenses such as your mortgage or rent, car payments, cable and/or internet service, trash pickup, credit card payments and so on.
   
   Variable expenses are the type that will change from month to month and include items such as groceries, gasoline, entertainment, eating out and gifts to name a few. , If your end result shows more income than expenses you are off to a good start.
   
   This means you can prioritize this excess to areas of your budget such as retirement savings or paying more on credit cards to eliminate that debt faster.
   
   Also, keep your budget alive my making constant adjustments as your situation changes. , It is important to review your budget on a regular basis to make sure you are staying on track.
   
   After the first month take a minute to sit down and compare the actual expenses versus what you had created in the budget.
   
   This will show you where you did well and where you may need to improve.
3. 3

   Step 3: Break expenses into two categories: Fixed expenses are those that stay relatively the same each month and are required parts of your way of living.

4. 4

   Step 4: Total your monthly income and monthly expenses.

5. 5

   Step 5: Review your budget monthly.

Detailed Guide

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