Written by Samantha, GGAL Mentor
Why budget? When to start budgeting? Typically, the best time to budget is when you start earning money! In this blog post, we’ll talk about WHY you should budget and tips on getting started.
Steps in creating a budget can include:
Determine your financial goals Planning to buy a car, house, or go on vacation? You can save for it gradually. Just think, how much money do you want to save per month after paying bills and purchasing necessities?
Compute your current income or intake of money Know how much money you typically earn per week, bi-weekly, or monthly.
Computing your current expenses or spending habits Know how much money you spend on paying bills, buying groceries, clothes, or other things and compare that with your income.
Using this information create a monthly or yearly budget in an excel sheet or document where you can track your financial situation over time Consumer.gov has a great worksheet that’ll automatically add up your income and expenses for you: Budgeting Worksheet Once you’ve mastered this worksheet, you can go on to create a monthly and yearly budget using spreadsheet or there are plenty of apps you can download onto your phone to calculate your expenses. Additionally, check if your bank has their own budgeting function on their app.
A budget can empower you and allow you to have control over your money
Your budget can be a structured way to save money and reach your goals around finances
Being smart about your money now will benefit you and your stability in the future
Using a budget you can also know how to use the money you have wisely, potentially eliminated unnecessary spending and saving money for useful items
Tips for Starting
Collect your receipts and spending summaries
Use an excel document to keep track of your spending and money patterns
Use a website or app constructed for budgeting
Keep an envelope filled with the money you are allowed to spend in cash for each month
Good luck budgeting!