How to Plan Budget

plan a budget

Instructions

1. Find a budget method that works for you. With the Envelope Method, once
   you decide on the expense categories you want to track, you place cash in each envelope according to how much you've budgeted for that category for the week or month. When you run out of cash in an envelope, you're done spending money in that category until your next budget period. This low-tech method is a good idea only if you have a secure place to keep the envelopes containing the cash.

2. If the Envelope Method of budgeting doesn't appeal to you, try the Notebook
   Method, which involves setting up a notebook with a separate page for each of your expense categories. Write the amount you've budgeted for the week or the month for each category. As you spend money, record the purchase in the appropriate category and subtract it from the starting balance to see how much you have left. This method always gives you a quick snapshot of where you stand, but takes daily or weekly recording of your spending.

3. If neither the Notebook Method nor the Envelope Method of budgeting
   works for you, try the Receipt Method. Keep receipts for each purchase. At the end of the month, total each expense category and compare it to your budget to see where you need to make adjustments. This method requires less frequent recording of your spending but may result in some big unpleasant surprises at the end of the month.