Managing your budget can be easy, but when the days blend to months and you are busy enjoying life, sometimes your spending needs a reality check! The good news is, we are here to help! Here’s how to start fresh and build a budget:
List Out Expenses
The easiest way to begin a budget is to determine what you are spending money on. Start with your big bills – rent/mortgage, car payment, other loans – then begin to break into the monthly, variable expenses. Grab your last grocery receipt, check out those gas station stubs, and list out any other flexible-but-necessary spending. Next, consider your savings goals, both short term and retirement. Last, consider the amount you’re spending each month on the “fun stuff” such as entertainment, shopping and dining out. Once you’ve listed out all these expenses, total them up and move to step two!
Identify your Income
Do you receive a paycheck weekly, bi-weekly, in a lump-sum? Are you on a fixed income? Are your investments making returns? No matter how the money is making its way to you, take a step back and identify what cash is available to you on a monthly basis. This will help you benchmark your spending each month as you set your budget.
Prioritize What’s Important
Let’s pause here: if your expenses outweigh your income, it’s time to reassess. Identify the “must-cover” areas that fuel your success. You need a roof over your head, you need access to food and water, you need to pay for daycare for your child. Those are non-negotiable areas that you need to prioritize your spending. Next, identify expenses where you can be more saavy and cut your costs. For instance, if you find your grocery bill is a flexible area, consider cutting your spending by shopping at value-brand stores or limiting the extras on your next visit. If you’re overspending on entertainment or shopping, brainstorm ways to have fun at no-cost (visit a library, take a hike, volunteer). The key here is to cut spending in enough areas that your crucial bills are covered and savings can begin.
Hire a Daily Money Manager
If this feels a little overwhelming for you, don’t panic! Developing a budget is a service our team at Florida Daily Money Management is proud to offer, and we are happy to help our clients identify and maintain a budget. Fill out our form or give us a call to discuss your budget options!
