livingdebtfree

I decided to write about this as I was not sure if all of you knew how to necessarily write out a budget.  I am a big fan of making lists, so much so that I have a blog dedicated to it.  It is not just making the list but I do gain pleasure of being able to check off an item that I have completed.  I especially appreciate it when I have completely a financial task and I feel a sense of accomplishment in addition to knowing that I am getting closer to living debt free.

1. Making lists of all the things that you spend your money in the month and that includes gas, utilities, groceries and entertainment.

2.  Add to the list any items that may come up such as car maintenance, or a setup fee for connecting a phone or internet service.

3.  Look at your list and try to combine things into categories.  The goal is to have as few categories or if you prefer as many that you would like.

4.  Make sure that you note down a dollar amount for each item.

5.  Using your total income, subtract off the expenses to see if you have a leftover amount or you may find that you are spending over what you have.

6.  From there decide what is a necessity and what is considered an extra or wanted item.

7.  Allocate extra income for a Rainy Day fund, investing, or paying down of debt.

8.  Clear out the clutter and organize bills, and financial paperwork to make it easy to find.

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