Hello my lovelies and welcome back to my Blog. In this article, we’re going to go through how to start and set up a budget quickly. Firstly, Microsoft Excel is my best friend and no, unfortunately, they are not paying me to say that. There are many uses for this excellent tool. For example, I use it for my budgets, grocery lists, vision boards, and basically any excuse to use it. If you do not know how to use Excel that is perfectly fine. I have a ton of tutorials for you if you’d like to learn here. I will also provide other tips on other platforms to create a budget in this article.
Step One: Find a platform you’d like to use
- Pen and paper- Maybe you want things the old fashioned way. That’s cool! I’m with it.
- Excel- Of course, my favorite. Get your free trial here.
- Microsoft Word- They have a budget template which is incredible and very convenient.
- Online banking- Did you know your bank may have a budget feature already started for you?
Step Two: Create your budget format
- Add Date Due, Amount, Bill Name, Bill Type
- Then fill in the rows with the information for each bill you have.
- I know this is time-consuming, but I’m here to help you pass the time.
- Items to include, but not limited to:
- Car Payment
- Insurance- Every kind you have.
- Gas- As in a car, not water heater gas.
- Credit Card Bills- Every Card should be separate.
- Student Loans
- Phone bill
- Utilities- This is where I mean for the gas bill to go.
Step Three: Reconcile your bills
- Once you have added each bill’s information now, you want to see if the charges are distributed evenly throughout the month
- Tip: You can change most of the due dates for your bills!
- If your bills are not evenly distributed or your paying most of the bills at the beginning of the month, call the companies and request to change the due date to whatever works for your paycheck schedule.
Step Four: The Math Part
- You will now add up how much all of your bills are per pay period.
- Then make sure to subtract your take-home pay per paycheck.
- You now can see how much you have at the end of each check for what some people call “fun money.”
- Lastly, if you have not added savings to your bills, Tsk Tsk, go ahead and add a Savings bill to each pay period.
- Now, this amount should still leave you will get enough money to survive.
- It technically should be 20% of your income, but I get that’s not always possible. Just save as much as you can. Saving gets better over time and repetition makes it a habit.
- Tip: Open a savings account and have it Automatically deduct from your direct deposit. For the reason of it grows without you even thinking about it.
Summing Up How To Start a Budget
Hence, you have finished! Woohoo! In another article, I will have you go more in depth with other things you should be adding to your budget, but this was to get you started. Now play around with it and see what layout you like best or maybe change some colors? Also, Pen and paper lovers maybe use some highlighters to color code certain bill types. The possibilities are endless. Step one to financial freedom is figuring out how to start a budget, and you have completed it almost.
Lastly, your homework assignment is to think about things I have not explicitly told you that you should include in your budget. Homework? Yes, homework. I said you we were doing this together. I meant it, Queen. Once you have, leave a comment with some items you came up with and add them to your budget! I hope this step by step guide on how to quickly start a budget was as simple as I wish. I’d love to hear your thoughts. You can always email me or leave a comment!
Your Finance Fairy