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With the holidays just around the corner, you’ve probably seen ads and sales trying to tempt you to spend more money than you may have. Creating a budget allows you to see all of your expenses in one place and can help you determine where you can cut back or where you need to spend more. Whether you are trying to save money for the holidays or for unexpected events, it helps to have a budget you can follow every month. You can now find free budgeting sites or apps to download on your phone to help organize your finances. If you prefer to write them down, you can buy a journal or bill organizer and make it your own.
Along with having a budget, also consider using an expense tracker where you can write down your everyday expenses, even if it’s just a package of gum at the gas station. Little things like buying lunch or getting a morning coffee can add up without even realizing it.
How do I make a budget?
Write down your expenses and due dates. Expenses are what you spend money on. Expenses include:
- Rent/Mortgage
- Home/Renter’s Insurance
- Utilities
- Food/groceries
- Gas
- Car Insurance
- Entertainment, like streaming/music services, going to the movies, etc.
- Clothes
- School supplies
- Childcare
- Unplanned expenses, like car repairs or medical bills
- Credit card bills
- Loans
- Alimony/Child Support (that you pay)
Write down how much money you make. This includes your paychecks and any other money you get, like child support.
Subtract your expenses from how much money you make.
Money left over each month can be put into a savings account, where you can continue to add it as you go. It’s hard to save money, and it may fluctuate each month, but when life decides to be unpredictable, it helps to have a little cushion to get you through.
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