Real Budgeting for Real People

The task of creating a budget can be a daunting one. Financial planners cost money and a majority of the people who need the help of financial planners are barely making ends meet. Here are some tips for real people who need a budget:

Take your financial picture
Write down ALL your regular bills and their due dates
This will include all utilities, housing, food, gasoline, insurance, etc. . .
Include at lease $40.00 miscellaneous money per week.
Write down ALL your regular income
This will include your job or business, child support, alimony, etc. . . .

Now subtract your bills from your income
If there is anything left over then you are not in the worst position.
If there is a negative balance then find out where you can make cuts.

Now put yourself on a schedule. Out of each paycheck pay whatever bills are DUE within the week. If all your bills are due around the same time then you will need to pay each bill in advance until you get to the last bills which will probably be paid just in time.

Once you get use to your new schedule, you can begin to find creative ways to save and cut your costs. Your household should be run smoothly like a business so wherever you can cut costs, do so.

Now go take your financial picture. Next time I'll discuss how to get rid of old debt