Start budgeting

Establishing  a budget and sticking to it isn’t easy, but it’s the best way to be in control  of your finances and make sure your money is going toward the expenses that  matter most to you.

Follow  the steps below as you set up your own, personalized budget:

1. Make a list of  your values. Write down what matters to you and then put  your values in order.
2. Set your goals.
3. 1. Write down your goals.
   2. Think about what you want to       accomplish financially in the next three months, the next year, and the       next three years.
4. Determine your  income.
   1. Figure your available income (the       amount of your take-home, or net, pay).
   2. Do not include overtime pay,       because you shouldn’t rely on that as regular income.
5. Determine your  expenses.
   1. Review your checkbook register,       credit card statements, store receipts, and more.  Where is your money really going?
   2. “Fixed expenses,”       such as a rent, auto, or student loan payments, are easy to determine.
   3. “Flexible expenses,”       such as food, clothing, and entertainment, vary from month to month.
   4. Don’t forget about expenses,       such as taxes or insurance, that are billed quarterly, semi-annually, or       yearly.
   5. Look into personal finance       software programs that offer a budgeting feature to help you track these       expenses.
6. Create your budget.
   1. Think of your budget as a “spending       plan,” a way to be aware of how much money you have, where it needs to go,       and how much, if any, is left over.
   2. Your budget should meet your       “needs” first, then the “wants” that you can afford.
   3. Your expenses should be less       than or equal to your total income.
   4. If your income is not enough to       cover your expenses, adjust your budget (and your spending!) by deciding       which expenses can be reduced.
7. Pay yourself  first!
   1. Saving is a very       important part of protecting yourself financially.
   2. Save as much as you can every       month.  Even a small amount can make       a big difference if you keep it up. Check out our savings calculator to learn       more.
   3. A great goal is to establish an       emergency savings fund large enough to cover three to six months of your living       expenses.
   4. After you have an emergency fund,       your savings can go toward meeting your goals.
8. Be careful with  credit cards. Learn more.
9. Check back periodically.
   1. Be sure to review your budget       regularly.
   2. Does the plan still meet your       needs and help you achieve your goals? If not, make some adjustments or       create a new budget that better meets your needs.

Ready to budget? Use our budget calculator!