How to Create a Budget

A budget is one of the simplest ways to get control of both your incoming and outgoing money. It is also the strongest advantage you can provide yourself with to manage your assets. By providing a visual look at your money, you will be much more inclined to give it the value it deserves, as you choose where it must be spent.

Choose a Method

Choose a method for building your budget. It can be a simple date book, your calendar on your computer or PDA, or even a notebook with a secondary calendar as reference. There are books available that will also provide you with space to write down your budget and lists to prompt you on what should be included. These are not necessary unless you feel that they will provide you with the extra nudge you may need to get started.

Make your Lists of Outgoing Funds

Monthly

Make a list of every single expense you incur in a given month. The monthly list could include, rent, mortgage, savings, electricity, heating gas or oil, water, sewer, cable, satellite, phone, cell phone, vehicle loan, gasoline, house and vehicle insurance, health, insurance, credit card payments, revolving loans, child care, garbage pickup, and any other bill that you pay on a recurring monthly basis. Groceries and toiletries can be included here, or under weekly.

Recurring Other than Monthly

Next, make a list of any bills that are paid quarterly, yearly, or on a recurring basis other than monthly. Some bills that may fall under this heading include land taxes, additional insurance policies other than those already listed, children's school tuitions, and veterinarian care for your pets such as yearly immunizations, gym fees, membership dues for any organizations you belong too, house cleaning services, yard care, and snow removal.

Daily and Weekly

Do you have certain money eaters that crop up nearly every day or once a week, such as that large cappuccino that you purchase every morning on your way into the office? How about your son or daughter's allowance, or fees paid for either them or yourself to participate in sports and activities? Other expenses under this category could include movie rentals and theatre fees.