Setting Up a Simple Budget

RE: Setting Up a Simple Budget Post By Karen (Guest Post) (04/03/2007) Keep a notebook with you, and every time you spend any money write down what you spent, and what you bought. Do that for a month, and you'll be amazed. At the end of each day, tally up what you've spent. In my case ( I should say my daughter's) her StarBuck's and Jamba Juice expenses reallly added up fast. The more you think about available cash and how it's being spent, the easier it is to manage. Another idea is to ask yourself, "do I really need this, or is it something I can do without?" If it's something you can't live without, what will you give up to have it? It's not easy, you have a lot of work ahead of you, but the reward (more money for the vacation/new furniture/whatever) is well worth it! Good luck exercising your WON'T power. RE: Setting Up a Simple Budget Post by Allison (81) | (04/03/2007) Profile | Contact Look for more information at daveramsey.com. Basically, it will say to list all your monthly expenses, then reorder them in order of importance. This is the order they should be paid in. If your income is less than your expenses, look for areas where you can cut back. I find it very helpful to use either checks or a debit card, NEVER cash. I can then check my bank account online and see where I've spent money. If I have cash, it gets spent and I don't remember where it went. I usually spend cash on something stupid like a milkshake and fries. Some people say they tend to spend more when they use a card than when they use cash, but for me it is totally the opposite. When I carry cash, I don't carry it for very long, but I only take the time to write a check or poke in my pin for the debit card when I really need something. RE: Setting Up a Simple Budget Post By denise warner (Guest Post) (04/03/2007) hi i too have a hard time making myself save. so my freid set me up on a simple system.use a note book and when a bill comes in write the check out then and deduct from you paycheck. this way all bills are paid first. next by you nessaties( food, gas,personal items) now what do you have left over? at this point whatever it is if you want savings put half in an envelope and put it up now what is left has to last you seven days.at first this was hard because i had to tell myself no but after a while you figure uot that. you are training yourself to put first things first. you need to live and have a roof over your head and you want to be able to have something to show for all your hard work so now you start to change your thinking and this allows you to make more informed descisions which will help you to plan for your future. so your doing this for you. and every once in a while reward yourself and splurge cause after all who whants lots of money they can never spend hope this helps denise RE: Setting Up a Simple Budget Post By Marta (Guest Post) (04/03/2007) This is a great article about budgeting... A simpler way to save: The 60% solution By Richard Jenkins http://articles.moneycentral.msn.co ... /ASimplerWayToSaveThe60Solution.aspx RE: Setting Up a Simple Budget Post By Carol in PA (Guest Post) (04/03/2007) Setting up a budget is easy, but you can make it hard if you think too much about it. (smile) Jot a list of your monthly expenses. For example, heat, rent or mortgage, car payment, insurances, etc. If your NEEDS come out to be more than your INCOME, you need to look back and see what you can cut down on.. for example, entertainment or clothing. Once you get bills paid off you will be able to buy more new clothes or whatever you've had to do without. Hope this is of some help. RE: Setting Up a Simple Budget Post By jojo (Guest Post) (04/03/2007) Hi Vallerie, I don't know if you get paid weekly, fortnightly or monthly. Set out an envelope for each bill you have coming in and write on each envelope, e.g.: 1. Electricity 2. Mortgage/Rent 3. Insurance (Car/or Home/or Life), use an evelope for each that applies. 4. Phone (or Mobile) etc., etc., just use an envelope for each bill... Some of your bills could be monthly so to work out how much to put away weekly simply multiply the average monthly total x 12 (for a year's worth) then divide that year's total by 52, this will give you an idea how much to put in that envelope each week, write the weekly amount on the envelope also. Some of your bills could be quarterly so,again, to work out how much to put away weekly, simply multiply the average quarterly total x 4 (for a year's worth) and then divide by 52 for a weekly total...don't forget to write your weekly 'deposit' on the envelope. If you get paid fortnightly instead, just double the weekly due amount and deposit that in the envelope and obviously if you're paid monthly you would 'deposit' 4 weeks worth. I hope I've explained everything simply enough and haven't confused you at all. Just take the time to ensure you've worked out all your bills and assigned an envelope for each one, it's worth the effort to get it all sorted, you could even make one for groceries but I generally used whatever was left to buy groceries (& started economizing there also when I'd got my envelope system up and running!). Also as someone else suggested, perhaps you could keep a note of unnecessary expenses so you can work out if there's anything you can cut back on until you get control of things. Good luck :) RE: Setting Up a Simple Budget Post by laramay (4) | (04/02/2007) Contact Setting up a budget that works for you can be difficult, but it is definitely worth doing. I use the envelope system for bills, and mark on my wall calendar and cell phone calender when bills are due. Try not to use checking accounts, as they charge fees upon fees. The most important question I ask myself when I go shopping with any leftover money is this: "Do I really NEED it, or do I just WANT it." That thought has saved me lots of $$$$ over the years. Good luck. RE: Setting Up a Simple Budget Post by micksgirl (137) | (04/02/2007) Profile | Contact When I was working, one of the hardest things was for me to see where the money was going. There was never a problem paying bills, I grew up with not having bills paid on time all the time, and I was determined not to do this as an adult. The very first thing that is paid is bills. My problem is the rest of my money I would blow right thru. I started a journal of expenses and one thing I would do is write down where every penny went. I started seeing a dollar here dollar there. So when I was able to go a week without doing this, without having to add something useless to my journal, I knew I was getting somewhere. Because of disabilities my family and I are living on a small fixed income. So this is coming in handy. I dont know if this will help you, but seeing my expenditures, everyone of them, in writing helped me not to spend every dime. RE: Setting Up a Simple Budget Post By Mary Ann (Guest Post) (04/02/2007) For me to learn to budget ,I was Not young, but a single Mom. I took envelopes and was paid 2 times a week so each paytime I put in the money !/2 of what my bills were then when bill came due I had the money. I know some you may not for sure know the amount so put in just a little extra of what you expect it may be. DO NOT take from these envelopes! I was faithful for several years till I retired and always paid my bills on time. Sometimes I only had about 10 dollars to see me through payday to payday but I made it(Praise God) I was even paying bills for my daughter at times. When I had direct deposit for awhile I had to go back to getting the check myself to get myself back on track with envelopes. This does work! patience,obedience pays off. An envelpope for each bill. RE: Setting Up a Simple Budget Post by Cresanna (2) | (04/02/2007) Contact I don't know if it is what you're looking for, but you're welcome to stop by my new blog on this subject to see if you find anything helpful. www.agoodmeasure.blogspot.com Request: Setting Up a Budget Post by moderator (913) | (04/01/2007) Profile | Blog! | Contact I am a recent college grad and looking for tips on how to set up a budget. I work as a waitress, so my imcome varies, and a large portion of it is cash. I am a responsible person and haven't had many money problems, but feel like I need to get better control over my finances. Any advice on bill paying, budgeting, etc. would be greatly appreciated. Thanks! Samantha from Davis, CA Answers: RE: Setting Up a Budget You need to have 3 accounts: immediate expenses saving up for large purchases (car, TV, etc.) a regular savings account Set up a ROTH IRA for retirement. Talk to your banker or a broker like the Smith Barney brokerage. (10/20/2005) By cookwie