If you are reading this, it is most likely you are one of those people who have their entire pay check spent before it gets into your hand. In your mind you distribute where the money is going, which bills you are going to pay, and birthday gifts you have to buy. At the end of the day you look at what you have left and you have less than what you thought. You are again, going through in your mind where all the money went.
It is easy to spend money the moment you get it regardless if it's for the things you need or want. BUDGET!!!!!! Write down all of your bills each month. and if one bill is never the same amount leave a little wiggle room. always expect to pay the highest amount you estimate because if you just guess the lowest and the bill is more, than you may come out short at the end of the month. Even though you know in your head where the money is going, seeing it wrote down in actual numbers, gives you a better understanding of where it is exactly going. If you pay rent, its a set amount each month. Make a list of bills that stay the same month after month and bills that vary from month to month.
Add up all of your bills that stay the same and add up the bills that vary, using the highest estimated amount. example: electric bill, one month you paid $55 and the next it was $70. Put down $70. or whichever was the highest amount within the last 3-4 months. this way when you budget your month out and your bill was less than the highest amount you know you have a little extra money instead of going through and cutting out a few dollars from the entertainment allowance.
Speaking of entertainment, it is not a need. Cable tv and internet will count towards entertainment. Your son doesn't need a new video game every month. Your daughter doesn't need a new cell phone cover just because her friends got one. Do this section of your budget LAST! I will make a list at the end of everything in order, that you need to figure out how much you spend on. Make a list into 3 columns. 1st one will be the item in which the money is going to (rent, car, etc), 2nd will be the ESTIMATED amount you plan on paying towards that item. and 3rd is the ACTUAL amount you paid (this part is done at the END of the month or when you pay the bill). In this order write these down in column number 1.
House payment/rent
Car payment
Gas for car/ bus tickets
Car insurance
Car maintence (if needed)
Heat
Electric
Other utlities (trash, water)
Phone
Food
Childcare/school supplies
Clothes
Hygiene
Home maintence items (laundry soap, dish soap etc)
emergancy fund (yes everyone needs one)
other (pets, doctor visits etc)
Entertainment ( bday gifts, movies, etc)
I will write another blog on how to save money with some of these items! Add up all your estimations and subtract them by the montly income. do not panic if you come up short, remember with your variable bills, you used the highest bill amount, you may not have to pay that much. And you migh spend less than what you thought or planned to. It is when you look at your reciepts and add up all the actual amount you spent that you start to see where the money actually went. If you estimated to have $50 left at the end of the month but you actually came out with and extra $84, put the difference into the emergancy fund. so it would be $34 into the e.f.!!!! Good luck. And it isn't all that hard once you get the hang of it. as the saying goes "time is money!"
