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Every one of us wants to have more money. Rather it is for a down payment on that new car or something bigger like buying our first home. We could all use a little more money. Unfortunately, money doesn’t grow on trees, so we are left with the complicated process of creating a budget.
But did you know that creating a budget doesn’t have to be complicated? It can actually be rather easy. Sometimes we make things harder than it has to be. We over analyze and have a hard time seeing the big picture.
Lucky for you, I am here to help. I have been there and done that. I have lived paycheck to paycheck never getting the things I wanted. That was when I knew something had to change. And you know what I realized when I actually sat down and look at my finances? I realized that I wasted a lot of money.
I bet you are just like I was. You probably don’t realize how much money you actually waste on things you don’t need. Lucky for you this article will provide you with the steps you need to step up your monthly budget. All you have to do is stick to it.
Write Down All Expense
This one seems obvious, right? Well, I don’t want to leave anything to chance. Sit down with an old fashion pen and paper and write down your monthly expense. You should write down every bill you have and then write down the amount you spend. This is the first step to setting up a realistic budget.
Budget In For Gas And Food
Most people forget to include gas and food into their budget. It is important that you do include it because you will always need to buy groceries and gas. When I say gas I am not talking about a gas payment that might be tied to your house. I am talking about gas for your car.
When you budget for food you should also consider creating a budget for your grocery bill. I wrote a detailed article on this already. It outlines how to save money on groceries and what you might be wasting money on. You can find it here.
Make Sure To Be Realistic
Now that you know what you are spending each month on actual bills you can probably guess how much money you are wasting each month on other things. I find that it is easy to cut things out like unnecessary trips and eating out when you have a goal in mind.
Write that goal down and stick it somewhere you see it each day. This will help motivate you to stick to your budget. You want to make sure you leave yourself enough out of your disposal income (what is left after bills) to treat yourself a little. Which brings me to my next point.
Put Money In Savings
The whole point in setting up your budget is so you can save money for your goal. Actually put that extra money in your savings and do not touch it. This is so important. Once you pull some of that money out of savings one time it’ll be easier for you to do it over and over again. Put the money in savings and forget about it. This is the hardest step, but necessary. Keep that goal in mind.
There you have it. I know this is a short post, but there really isn’t much more to say. Setting up a budget can be easy if we just look at it the right way.
What are some other ways you have saved money in the past?