What's a good way to make a budget?

Question

Is there a formula for how much one should spend on food, etc.? What's the simplest, most effective way to do it so that it's likely to get stuck to?

Answer 1

there's no one formula that would help you budget your spending.  it's not a cookie cutter.  

it's best to budget based on past spending.  most people have a spending pattern.  say for example, i spend $50 every week on groceries -- multiply that by 4 and it'll give me my monthly spending.  try to include as many monthly expenses as you can think of... like phone bills, gas/electric/water bills, eating out/restaurants, car payments, medication, insurance, etc.  start tracking all your expenses in Excel (i download all my banking transactions from online banking).  i've tracked my expenses for years.  i look for spendings that are unnecessary and  try to cut back on them.  spend wisely.  it really works.  try to make one small change at a time.  it'll be easier to stick to.  also try to set aside some monies every week for savings.  $50, $100 or even $25, whatever you can afford and not even notice.  the savings will quickly add up before you know it.  how much you spend on food or entertainment is entirely up to you and the lifestyle you want to live.  as a rule of thumb, people generally spend 1/3 of the earnings on housing.  the rest is really up to you...

Answer 2

Divide your income into 3.  

Save one third, preferably in savings account where it will earn some interest.

Keep another for regular neccessities like rent, utilities etc.  

Use the third for day to day expenses like food.

It helps to know where the money is going.  Track all your spending for one week.  When it is there in black and white, it is easier to see what is unnecessary.  It is always possible to trim some spending, even if it is only deferring a haircut for another 1 or 2 weeks, or walking a little more instead of using other transport.

Answer 3

The simplest and most effective way is to use a blank sheet of paper and a pencil.  I learned this method from a self-made millionaire who STILL uses it every month.

At the top of the page,  write down your income for THIS month.  This is for THIS month, not a 'normal' month.

Below that list EVERYTHING you will do with money THIS month.  Keep a running total of what is left.

At the bottom of the page, you should have $0.00 left.  If you have more, go back and assign it to something (savings is a budget category).  If you have less than zero, you have to cut something to balance the budget.

It takes a few months practice to figure out how much you need in each category.  Once the budget is done for the month, you are not allowed to spend a penny unless it is on the paper.  If you absolutely must spend money not listed, you have to adjust the budget on paper BEFORE you do.

A good method to help stick to the budget is the 'envelope system'  If you have $200 budgeted for food, put $200 CASH in an envelope labeled 'Food'.  Whenever you buy food, spend the cash from the 'Food' envelope.  When the envelope is empty, you can't buy more food.  Use similar envelopes for other categories.

Answer 4

MY SISTER HAS A GREAT COMPANY THAT SAVES YOU MONEY BY GETTING A BETTER PLAN IN TECHNOLOGY YOU ALREDY USE FOR LESS OR SHE CAN HELP YOU MAKE MONEY . DONALD TRUMP SPONSERS US AND HE IS THE RICHEST MAN IN U.S ITS REALLY WORTH IT AND IF YOUR INTERESTED I CAN EXPLAIN MORE TO YOU LET ME KNOW