BUDGETING 101 – Part 1: Where to start!
Want to create a Monthly Budget and do not know where to start?
On the first day of NEXT month, get a receipt for everything you purchase and save it in an envelope. On the last day of the month, review, categorize and log your receipts.
This will give you a starting point and show you where you may need to cut or expand your current ideas of how you allocate funds.
Some categories you may find useful are:
- Food Necessity (groceries)
- Food Non Necessity (Coffee, Beer, Fast Food, etc)
- Transportation (Car Payment, Gas, Public Transit, Parking, Vehicle Maintenance)
- Utilities (Phone, Internet, Cable, Cell Phone, Heat/Power, Water/Sewer, etc)
- Mortgage
- Entertainment (Movies, Golf, Outings, etc)
- Memberships (Gym, Clubs, etc)
- Clothing
- Hair Cuts
- Luxuries (Esthetic services, Massage, Social Outings/parties, etc)
The key this month is the save EVERY receipt. If you do not get receipts for things like Coffee or other small purchases, be sure to keep a log of what you do spend. Every shop will issue you a receipt if you ask, so the best way to keep track is to ask for that receipt.
Stay Tuned for Budgeting 101: Part 2