Creating a budget is something everyone knows they should do. But how many of us actually get around to doing it? Not many.
If you don’t know how much you spend a month and how this compares to how much money you make, you could run into financial troubles. You need a budget.
Budgeting isn’t complicated. It is simply a matter of keeping track of how much you spend versus how much you earn. Sounds easy doesn’t it? Then why aren’t more people budgeting? Because they simply don’t know how to get started.
Start by tracking your spending. Record everything you spend money on for a month or two. Keep track the old fashioned way by writing down every purchase you make including that daily cup of coffee, eating out, dry cleaning, soft drinks – everything!
Create categories for your expenses – groceries, eating out, entertainment, transportation, gifts, mortgage, power, cable, etc. Once you have these numbers you will see exactly how much you are spending and where you are spending it. Click here to learn more about budgeting in our “8 Weeks at a Time” booklet.
Figure out where you can cut costs. Is it buying a soft cover book for Aunt Clair instead of the hardcover? Make your own lunch or coffee before you leave the house and save $5 every day. Borrow a free movie from the library instead of renting. You will be surprised how fast these changes add up.
Once you have your income and expenses figured out you need to stick to it! Budgeting is hard work but well worth it in the end.
CCSAC offers presentations on how to create a budget. Contact us if you would like more information or are interested in attending one of our presentations.
