Guys this is something that so many talk about. It’s information our nation needs but can be overwhelming, stressful, etc. I don’t want you guys to worry though, you can take control of your budget this year and find a system that works for you! Here’s some simple guild lines to getting started on your budget this year.
Start with the right attitude. Your budget is something that shouldn’t be boring nor make you feel confined or restricted. This is your budget and what’s important to you. If date nights are essential, then budget for them. If you love new electronics and have to have the newest model, budget for it. But go into it with a good attitude!
List out your debts and bills. We did this by looking through our last month’s statements. I made a list (in excel) with the due date, what the expense is and the minimum payment. This gave us an idea of exactly what bills had to be paid and when. Another great way is in a bullet journal. Make it something you love and that you want to go back to often.
Now you need to come up with your categories and list out your expenses. When it comes to the categories, i used Dave Ramsey’s list, here’s what I found and like:
- Charity 10%
- Savings 5-15%
- Housing 25-35%
- Utilities 5-10%
- Food 5-10%
- Transportation 10-15%
- Medical 5-10%
- Personal 10%
- Clothing 2-7%
- Recreation 5-10%
Now this is off your income and obviously these numbers don’t work for everyone (as in our housing in more in percentiles than he recommends so we have to save in other categories to make it work) but it gives you a good start to your budget if you’re needing some guidance.
Then I’ve found the best way for me to keep track of my expenses is to not worry about writing where it went but just the amount. So say i spend $50 at Smith’s. I’m just going to say -$50 in my groceries category. It’s simplified and something I can keep up on. If you’d like to keep track of all that information and it’s something that works for you, go for it! Just do something that works for you.
Lastly keep track throughout the month. If that’s an every night thing you’d like to do, do it! I’m more of a once a week type of person where I’ll sit down at my computer with my paper and write it all down under the categories. You can even compare your receipts to your bank account so you’re not missing anything, but find a time and stick to it!
You’ve got this guys! This is the year you’ll take back your finances and really know where your money is going!
