Writing a budget for the first time ever is a difficult but not an impossible task though. There’s everything to remember and you might face problem in knowing where to start. I promise you people that it will be make your life easier and it is not difficult as it sounds.
First of all you will have to plan a budget for the entire month. It’s a nice thought as well if you use the same budget for next few months too, but to be very honest it’s not much realistic because things don’t go exactly what you think but at least you can try. You know every month is different in terms of holidays, birthdays and so on.
If you’re married and a father/mother of couple of kids I personally suggest you to start writing a budget for every month together with your partner. Creating budgets together increases communication and understand with your partner. Furthermore, any one of you is spending much or going out of the budget one can give a polite reminder as well. Following are few steps for writing a budget.
Calculate your monthly income
First thing to do is note down the monthly income you’re bringing at your home every month and the money you’re bringing after taxes and insurance is your net income. If there are two incomes coming into your home then add them together and write it down to exactly know the net income coming in the house.
Calculate your monthly expense
This is the main part of writing a budget that requires much attention and energy. Take out some time and start writing. These should include following things:
- Rent
- Utilities
- Medical bills
- Groceries
- Restaurants
- Savings
- Gifts
- Debt payments
- Transportation
Personal care
Total up your expenses
Before summing up your all expenses make sure you don’t miss out anything in writing your monthly expenses. Don’t forget mentioning birthday gifts in your monthly expenses that your kids are invited to. Once you’ve covered everything sum up all your expenses.
