How to Stay within Your Budget

Watching where your money goes should keep you on track.

If you are worried about money, now is the time to make a budget and stick to it. You'll need to keep your expenses in line with your income. One of the most important things you can do when you're working to stay within a budget is track your money. If you don't, it's easy to overspend. If you find that you're consistently blowing your budget, you need to do a thorough assessment of your spending and saving habits.

Things You'll Need

• keep track of everything
• calculator
• savings

Instructions

1. Review your budget to be sure you know how much money is coming in and what your expenses are: rent or mortgage, insurance, utilities, transportation, debt payments, food, clothing and entertainment, as well as savings and an emergency fund.

2. Keep track of where your money goes. A current running total of what you spend will help you stay aware of your budget. Write your budget limit on a note card, keep it handy and refer to it whenever you open your wallet.

3. Try using cash as often as you can. Some people find it harder to part with bills than to hand over plastic.

4. Automate whenever possible. Have your paycheck direct-deposited to your checking account, and arrange for your fixed expenses -- savings, mortgage, insurance, debt payments -- to be deducted automatically.

5. Use financial software to help you create a budget and even send you reminders to pay bills. Programs such as Quicken will allow you to graph and chart your spending so you see where you're on track and where you're overbudget.

Tips & Warnings

• Even if you blow your budget a few times, keep working on it. Good budgeting is the key to financial freedom.

References

• Good Housekeeping: How to Stick to a Budget