Once you’ve decided what you will spend your money on and how your budget will be structured, it’s time to create your plan. At the end of two months, I’ve got my full rent payment already set aside. So every two weeks, I budget $187.50 toward rent. For instance, my husband and I alternate paying our $750 rent each month. Personally, I’ve built my budget on a bi-weekly cycle, as this is how I’m paid. How are you paying your bills? Most pre-designed systems are designed on a monthly budget cycle. While you’re doing this, consider the structure of your budget. Once you’ve gathered the information, it’s decision time! Could you do without the data plan on your cell phone in favor of the basic voice service in order to save $40 each month or $480 per year? Must you have both Netflix and HBO? Does your dog need a monthly trip to the groomer, or could you bathe him at home? These are the types of questions you will need to ask yourself. Tally your monthly income vs your monthly outflow. Check your fixed vs variable expenses as well as your income each month. You need to see where your money stands before you can do anything. See how your current expenses stack up against your current income.Either way is good: just find out which method is most comfortable for you to try. Some people may decide to use budgeting software or decide to do things more manually. This could mean organizing your financial statements, checking your income sources, as well as your outflow. These irregular expenses may be tougher to determine, but try to determine a realistic estimate. vehicle registration, property taxes, medical co-pays, etc.). You also need to make a list of expenses that, while not regular monthly bills, occur periodically and must be accounted for (i.e.

It’s important to know where your money goes before you set about building a realistic budget. Track your expenditures for a period of one week to one month.

How does you need a budget work