How to create a budget, you can (actually) Adhere to

Budgets are to be generally large in stock, but it is difficult in theory.

That's because many deal of us with budgets more wishlists (like we would spend our money, in a perfect world) instead of directives based on the reality (the way we do our money to achieve our financial goals spend) .

, A budget that really works, and it allows you to create a comfortable and happy life, you should spend a fixed idea of what happened to you, what you can really afford, and what your priorities are.

You have trouble sticking to your budget or not moved to create one, here is a simple step by step guide to help you create a budget, you will actually be able to follow.

1 to find a system that is comfortable

If you want to keep track of everything is to see exactly where you're money is going, set up a spreadsheet in Excel formulas to use, so you do not have to keep adding things by hand. Make a point of collection of revenue and accounts at the end of the day (or week) and update their numbers.

If you prefer a lot of time to control your spending without invest, use a site like Mint.com, you will connect to your bank accounts and credit cards for their daily transactions automatically filtered predefined budget categories can. You can see at a glance where your money goes, without seeing all yourself.

Whatever you choose, make sure it is one that nice that you feel. Partly it is for you to maintain and control, the more likely you are to stick to it.

2 Calculate your total income

How much money is currently going on? This is your take home after taxes and things like 401K deductions subtracted. , Regular checks for payment, part time jobs, extra income, etc.

3 Calculate your total cost (required)

How much money is spent on the needs? These include utilities, rent or mortgage, car payments, medical bills and groceries.

Expenses as you are resolved your mortgage or car payment, that is, you pay the same amount every month. Others, such as grocery stores, are variable and will be a bit more difficult to calculate. Give your best estimate of how much you spend each month, when you consider that you can always adjust later. (See step 7)

4 An estimate of your discretionary spending

To a budget that will not make you unhappy and you are more likely to follow to actually create, you have to allow some money "fun". How much depends on what your current financial situation seems, and the things that bring more joy.

Perhaps more than we can now afford a cheap rental Redbox is every weekend. Maybe you can set aside for a nice dinner $ 50 / week. Opt for discretionary purchases are of the most important and understand how you can make room for them. You can not take on any TV or clothing, for example, but decide that you want to make room for the theater and traveling.

5 Our additional costs

Not all costs are regular monthly expenses. Things like records water bills quarterly and annual car can not be in their radar month, but always predictable, so you have to make room for them in your budget.

To ensure that they do not involve unexpected costs that a gap in your monthly budget for the occasional expenses and set aside a little each month so that if your quarterly or annual bill comes, money available, to have them pay you .

6 Click on a point to save

Every month, you should set aside money in savings three main goals:

• Emergency fund (3-6 months of income for unexpected expenses such as illness or accident)
• Pension funds (401k, IRA, etc.)
• Personal goals (saving for a family vacation, a down payment on a house, college fund for their children, etc.)

Decide how much you can reasonably contribute to the goal, and if necessary, change some of your variables and discretionary spending to save even more. Saving is something that too many people have pushed to the back burner and regret down the road. Be proactive and make a plan to save a portion of their regular budget.

7 opinions and Tweak

Circumstances change. Change our priorities, change jobs, move, have children. Make an appointment with yourself every few months to sit with your budget and make it work for your goals and current circumstances. If you have already connected with your program or web page numbers, it is easy to play with your budget categories to see where you have to create more space or to prioritize one thing over another.

Remember, your budget should work for you and not vice versa.