Things You'll Need:
- Pen
- Paper
- calculator
- copies of pay stubs
- copies of bills
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Step 1
Figure your monthly income. Set up your income guidelines for your budget by figuring or in some cases estimating your average household monthly earnings. An average of at least 3 months pay is a good rule of thumb. If your income involves bonuses and commission it is a good idea to look at trend as well as average and adjust accordingly.
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Step 2
Record all monthly expenses. Second write down all your monthly budget spending. Convert all your expenses to an average each is spent per month. This may mean dividing annual by 12 or multiplying weekly by 4.
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Step 3
Set your monthly budget goals. You should have guidelines for goal setting as a part of your budget as well. Set long and short term goals or separate into monthly, quarterly, and yearly as well. Then write your goals into one of these categories and divide accordingly to come up with an average monthly goal attainable.
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Step 4
Research your spending habits. Investigate all your spending records to get a handle on everything you spend, credit statements, check balance statements, and any cash receipts are a good place to start.
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Step 5
Plan your Savings. Develop guidelines for what you want to save and a budget amount left for what you will spend on a monthly bases.
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Step 6
Choose your budget obligations and Necessities. Develop a list of what you must spend monthly first and determine how and when you will pay them.
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Step 7
Prioritize your other needs. Set your guidelines for other monthly expenses that are needed but in differing amounts like food, gas, phones, etc. and decide what you want to allow as a budget for these items.
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Step 8
Determine a budget savings fund for emergencies. This fund encompasses both savings and unexpected expenses that arise. The guidelines for what can be set aside depends on what your future goals are and what unpredictable monthly costs may occur.
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Step 9
Create personal and family allowances. Set up guidelines for what persons in the family are allotted to spend each month. Its good to include the kids in this one and incorporate some chores if they want a raise.
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Step 10
Balance and Adjust your plan. This step is an ongoing process and must constantly be worked. Adjustments are usually made in the Needs and Allowances or wants categories but sometimes the must pays change as well and need to be adjusted.
