If your budget shows a positive figure, then you’re spending less than you earn.When you finish your budget you should have a figure that shows money left over at the end of the month. Simply adjust these categories as you get more in-tune with your spending. You may realize you have way more expenses than you thought when you start calculating them, but that’s okay. Forgot to budget for - this category catches all the little things you forgot to set aside money for.

Look at your receipts and past credit card and bank statements to find the average amount you spend each month on each spend category. Calculate your expensesĬreate budgeting categories for all of your monthly expenses. This could include your salary, interest and dividends, investment income, family allowances, child support, alimony and even income from your side gigs or hobbies. Once you have your budgeting method, add your total monthly net income. If you despise the thought of budgeting and want to automate the process as much as possible, a software like EveryDollar may be a better fit. If you’re a numbers person who loves a good spreadsheet, an automated software like Tiller Money may fit the bill. Do you want to track everything manually in a spreadsheet? Use a budgeting app to help you automate the process? There’s no wrong answer, but choose a method you think you’ll stick with - and dare I say - even enjoy. Find your budgeting methodįirst things first, think about how you want to budget. Follow these steps one after another and you’ll have a stronger grip on your budget before you know it.

You can strip the budgeting process down to about 6 steps in total.

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