What's a good way to start and maintain a personal budget, and how would i start?

Question

What's a good way to start and maintain a personal budget, and how would i start?

Answer 1

What is your net income?  When you cash your pay check how much is it?  Are you paid same each week?  Are you paid weekly, bi weekly, monthly?  

Figure out what your expenses are each month.  Fixed (rent, car payment, insurance, electric, etc).  After those expenses are taken care you have have the rest for entertainment, clothes, eating out, etc).  

Your monthly expenses for your housing (electric, rent/mortgage, phone, insurance, taxes etc) should not be more than - 38% of your net income

Automobile - gas, payment, insurance - 14%

Savings - 5-10%

Tithe to church - 10%

5%  each for - entertainment, food, clothes, emergency fund, etc.  

These numbers will flucutate but you need to keep up where your money goes.  Keep a log for 30 days.  List every penny you spend.  You would be suprised at how fast those Moca lattes from Starbucks add up at $4+ each.  

Look to cut back and see if you can cut $200 of wasteful spending out of your monthly expenses.  

If you mess up one month do not get discouraged. Get focused on the budget and start again.  

Good luck.

Answer 2

Do you know what you have in the way of regular income? Spend less than that. This is the principle fact, pure and simple of budgeting, Spend less than you make. So there are certain payments which have to be made monthly like rent, utilities, auto insurance, life insurance and car payments. Then there are weekly expenditures for gasoline, food, recreation, dates, etc. Then there are the daily items like lunches, breakfast an occasional beer or glass tea. List the cost of each of these expenses and see if these are less than what you earn. Break everything down to weekly increments if you are paid weekly. That is the simple method of bugdeting.If expenses exceed income you will have to do without. Cut out the unnecessary items like the occasional beer or eat out breakfasts. The above is a simple tool which can apply to any type of budget.