How to Develop a Monthly Spending Plan

When you develop a budget it will help you avoid monthly shortfalls. It will also help you build your credit, get out of debt, and save for that dream you have your heart set on. It can be hard to live on a monthly budget but it is truly worthwhile if you can stick to it.

Instructions

1. Keep track for one month of every cent you spend and put it on an expense sheet.

2. Create an expense sheet. List everything from gas to entertainment to debts on this sheet. Make separate categories for every item you can think of.

3. Determine your earnings for the month.

4. Using the monthly list and the expense sheet you created figure out what you spend each month.

5. Take the expense money and subtract it from your earnings.

6. Think about the new month coming and predict if there will be any upcoming extra expenses, for example, holiday gift shopping or a vacation. Subtract that from the money you have remaining from Step 5.

7. Look at your budget and decide where you can make cuts.

8. Rework the budget so that it works for you and your lifestyle.

Tips & Warnings

• Change your spending plan each month. No month is the same so therefore no monthly spending plan should be the same.

• Spending plans can change as circumstances change.

• Make your plan before the beginning of a new month.