Are your finances out of control? Do you feel like your money is leaving the second it is deposited into your checking account? You’re not alone.
Countless individuals feel the exact same way. Everyone knows working a budget is the hardest part of the journey – it’s making the budget that’s the easy part! Yes, you can make a quick and easy budget. It’s not rocket science, and by the time you’re done, I know you’ll feel better!
Here are the 5 steps you need to start your quick budget today!
- Gather receipts or a bank statement showing the last month’s worth of history. This will give you a great idea of what your spending is month by month (when you’re not on a budget). This is an awesome starting point from which you can create categories for your budget and see how much you spend in each. Don’t worry about getting everything too accurate – this is a quick budget!
- Write down how much your net income is. This will help you determine if your spending is greater or lesser than your income. If your spending is greater than your income, cut up those credit cards! Nobody wins by going into debt except the bank.
- Target your top spending categories and make dramatic cuts. When you were gathering your receipts or bank statements, did you notice an area of spending that you really should be spending less in? If so, ask yourself how much you can cut from this category. More than likely, you’ll have several categories that are way over what you should be spending.
- Target your current assets that you can’t afford and sell. Hey, you know that fancy new car that is sitting out in your garage? Maybe you should sell if you can’t pay your bills! Or maybe you should sell it to get an emergency fund that will help you when you have those unexpected expenses come up in a few months. When you first start budgeting, it’s nice to have an emergency fund that you can depend on just in case you forget to fund a certain category. By the way, is your house too much for you to handle? Try downsizing and see if that makes a difference!
- Understand that these things will take time. Alright, you might be wondering why I’m talking about the big picture ideas in budgeting and not the smaller ones – after all, this article is about how you can make a quick budget! Well, I want these concepts to be in the back of your mind so that when you’re writing your budget, you can be extra frugal!
So there you have it! Soon, you’ll be an expert at budgeting. Make a quick budget today or learn how to budget more comprehensively!