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Budgeting for Beginners

Updated: Aug 29, 2021



I know, budgeting, it sucks. But it also helps! Many people do not understand the power of a great budget. It’s easy to make but so hard to follow. I am going to tell you how to make a great budget that fits you! There are a few but easy steps to follow to get you on the road to saving.


First, think about why you need a budget. Whether it is to have a little savings for a rainy day, to make sure your bills are paid on time each month, or you have a particular goal you are saving towards, think about it and let that be your motivation.


Budgeting has been my best friend. Having limited funds, a part-time job, and being a full-time student not too long ago, my budget was my life line. My motivation was simply to make things easier on myself and to make sure I am not struggling to make ends meet. I did not ever want to be stressed about paying my bills on time. But it may be different for you. Either way, focus on that goal and let it guide you to financial freedom!


Second, make a list of all of your monthly bills. Some of them may be a fixed amount and the rest may be variable. That’s okay, come up with an average or estimate for that monthly bill. Then as the bill statement comes out, you can update your amounts for when it’s due. There are two methods to doing this. I do both methods depending on how I am feeling that day. One is to simply make the list of bills along with the amounts and input them into an Excel spreadsheet to do all of the calculations. But, if you are not tech savvy like a lot of people…a notebook, pencil, and calculator will work just fine! Add all of your bills and that will determine your monthly expenses. I would suggest including an estimate for groceries and gas to have a true idea of your monthly residual income.


Third, determine your monthly income. You may get paid every week or bi-weekly or semi-monthly or even monthly (God bless you if you get paid once a month!). You also may have a side job or hustle, include that.


Next, subtract your total monthly expenses from your monthly income and that will determine how much money you have to play with each month. I suggest taking a certain amount of what’s left and saving it. You can play with the rest of the $20 you have left.


This was just a very quick guide to budgeting. I personally take it a step further. I am a salaried employee and am paid semi-monthly. So, I total my expenses for my bills that are due during the first half of the month and determine my budget until I am paid again and have to pay my bills that are due during the second half of the month. It may be confusing to some. But I am here to help. Feel free to contact me for budget services and I will be happy to help you! For a fee of course 😊. You can email us or send us a message on the site.


Let me now if you have questions about budgeting. Suggestions are also always welcomed. Like, comment, subscribe my dears! Talk to you next week.


Peace,

JW

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