Step Two-Establish a Budget
During last week's exercise, you laid the foundations for creating a budget by looking realistically at your income and expenses.Using that information you can now create a budget.
- Go here for a simple printable budget worksheet in pdf format. You can also choose to create your own on a computer program such as excel, or search the internet for other templates.
- Choose a time period for your budget (weekly, monthly, bi-monthly). I like doing a monthly budget, but you can choose whichever is easiest for you to realistically track based on your pay schedule and/or bill schedule.
- Fill it in using the information you gathered from last week (and taking into account any changes you've made or want to make in your lifestyle since doing the exercise last week).
- Use it as a guideline for purchases/bills throughout the week throughout the week.
- At the end of your specified time period, evaluate your budget. Did you spend more than you budgeted in certain areas? All areas? Did you spend less in a certain area? Several areas?
- Use what you learned to create your next budget. Remember though that you can only spend as much as you make.