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.

Can you relate to this as well? Don’t hesitate to follow these steps to make yourself out of this paycheck to paycheck life. Here are few things you can follow to change your best financial life.

Never give up on a budget

Without mentioning about a budget in this article would have left the article incomplete. I used to think budgets were for those people who were just boring and didn’t had a social life but then I realized setting a budget is mandatory for an individual for living a happy life. It’s a great way to having control on your money.

I know sticking to a budget is kind of difficult task but the good thing is you’re capable of doing difficult things. You will make mistakes as no one is perfect but you will learn by time. But if you want to stop living paycheck to paycheck life you need to set a budget and follow it. It is the main key to control your spending.

Avoid using credit cards

Are you using credit card at the end of the month when you’re out of money? Maybe you’re a week out till your next paycheck arrives and you need to buy groceries, fuel up your vehicle or maybe buy something else so you put everything on the credit card thinking will pay it off when the paycheck arrives and yet you pay the minimum amount of credit card bill. The problem arrives at the end is you don’t have money to wipe all your credit card amount. This happens month after month and you wake up some day with thousands of dollars in credit card debt.

It’s time to avoid using credit cards as your safety net. It’s time to stop using it for other expenses at the end of the month. Try to stop the cycle. Try making a plan so that you no longer cover the normal expenses through credit card at the end of the month. You may have to go for side hustling to manage your expenses but trust me that’s worth it.