With your spouse or accountability partner by your side, get to work and follow the steps below to create your first monthly budget, that works.
Budget before the month begins.
For example, you’ll work on your February budget the last week (or so) of January.
List all income for the month ahead.
Include regular paychecks, bonuses, and money from side jobs or gifts.
List every expense for the month ahead.
Include giving, saving and spending. Don’t forget bills, debt, memberships, food, clothing, gas, entertainment, and anything else you might spend money on.
Move money around until income minus expenses equals zero.
Maybe you’ll reduce your entertainment spending in order to increase your savings, or perhaps you’ll reduce your restaurant spending in order to buy a new pair of sandals. Keep moving things around until you have a plan that works for you.
That’s it! You have been shown how to create your first monthly budget. You’re officially a budgeter.