How To Make A Monthly Budget

How to make a monthly budget? A lot of people are confused by this.  Okay, so you’ve decided to take the bull by the horns and get your finances under control. You have listened to various financial experts and are going to start doing a budget every month. What information do you need? How long is this going to take?

I’ve been doing my budget for eight years and it usually takes me about an hour a month to write it all out. I do this before the following month even starts so I have a very good idea where we are at.

Here is how to make a monthly budget in just a few easy steps.

Step 1: I gather my checkbook, log into my bank account and grab a notebook. I take note of the balance in my checking account and then subtract what hasn’t come through yet. I write this number on the top left hand side of the page.

Step 2: I add my estimated paycheck amount to my bank balance for the first week.

Make A Budget

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Step 3: At the top of the page I account for our expenses for the month in two columns. Then I make four columns for the rest of the month. I label each of these columns according to how many weeks in the month. (Week 1,2,3,4,etc.)

Step 4: I go back to the page with our expenses listed and make notes of the due dates for each bill then allot a certain amount for weekly expenses like gas and groceries. Then I look at the calendar and plan out what bills are going to be paid which week.

Step 5: I add all our bills for each week. Gas and groceries are included every week.

Step 6: Next, I go back to the balance in my notebook and start subtracting bills. If I get to the end of Week 1 and there’s a balance leftover then that money gets rolled over to the next week and added to the next paycheck. I keep doing this until all bills are accounted for. If there is a balance leftover at the end of the month, I split it and put half of it in savings. That is how to make a monthly budget.

When you first get started, it isn’t going to go smoothly. Things will come up, you will forget small items like birthday presents, flea treatment for the dog or your kid’s soccer cleats. It takes about 90 days before everything is smooth sailing, but the peace of mind you will have knowing exactly what comes in and goes out will be priceless. This is how to make a monthly budget.

Photo courtesy of wapczocha via  Pixabay.com

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