Disclosure: Some of the links below are affiliate links. This means that, at zero cost to you, I will earn an affiliate commission if you click through the link and finalize a purchase.
Creating a monthly budget can feel like a frustrating task, but it does not have to be. A budget is simply telling your money what to do. It is a way to help you reach your financial goals. It does not have to be difficult and time consuming. I begin my budgeting journey by grabbing a sheet of paper and writing down all of my expenses and my income. I am a visual learner, so seeing my budget helped me to understand my financial situation. It was a reality check. I was spending more money than I made. I knew that if I did not make IMMEDIATE changes my situation would cause me to sink further into debt.
Make a decision to take control of your finances.
I made up my mind in that moment that enough was enough. The thing about budgeting is that you have to be ready to face the reality of your situation. Even if it is only writing down your expenses. It’s a start. This helps you to see what expenses can be reduced or cut. It also allows you to make decisions on whether you need to earn additional income through a raise, side hustle, and maybe a new job. Budgeting allows you to take control of your finances and do something about it.
Write It Down.
You can use a sheet of paper, a notebook, a budget printable, a spreadsheet, or a budget planner to create your budget. I create a budget for the month and then determine when I will pay each bill based on my expected pay periods for the month. I normally start by writing down all of the income that I expect to earn for the month. This includes income from my job, business, investments, passive income, and all other income sources that I expect to receive that month. If you are not sure how much income you will receive from a source such as a side hustle, either estimate the income or don’t include it. Your monthly income should include the income that you are sure you will receive.
Next, I write out all of my expenses for the month. Some budgeters write the bills that they have to pay such as rent, utilities, food, gas, childcare, debt payments, and etc., and then determine how much they will allocate to savings, extra debt payments, and entertainment. I right everything, including entertainment, upcoming events that will cost money, subscriptions, and memberships. This will help you to decide what bills you want to reduce or eliminate from your budget. Now calculate the total of all of your expenses that you have written down.
Finally, calculate how much money is left after you pay your expenses (Total Income – Total Expenses = Remaining Money). If your expenses are more than your income, then it is time to decide which expenses to reduce or get rid of. If you are not able to lower your expenses, then decide how you can earn more income. A quick way to earn more money would be to sell things that are in your home, get a part-time job, and/or start a side hustle. It may take time to grow a side business, so if you need immediate cash earn additional income another way. If you have money left over this is a good time to decide where this money will go. I use a zero-based budget, meaning that all of my income will be categorized. If you plan to save your money, a fun way to save it is by doing a savings challenges.
Your budget may change due to life circumstances, but a budget is a great tool to help you plan and save for the future. Creating a monthly budget is the first step to getting your finances in order. Remember this is a journey and you can do it!
Free 2023 Budget Planner
I created the 2023 Budget Planner to help you take control of your finances. This planner will help you budget all year. Get the updated free printable in the Resource Library here.
