- 1. Write down your total income for the month.
Be sure to include, pay, child support, alimony etc. You need to include all monthly income to insure this number is accurate.
- 2. Write down your total expenses for the month.
Be sure to include anything that you spend money on. Most people remember their rent/mortgage, utilities, credit card bills etc., but they forget the little things can quickly add up.
Just two coffees a day @ $1.50 each, will total $90 a month!
We recommend that you carry a small notepad with you every day for a week. Write down every time you spend any money and how much you spent. This will help you make your personal budget realistic and effective.
- 3. Subtract your expenses from your income.
Money left over? Great! Once you know exactly how much extra income you have each month, you can start planning what you would like to do with it.
Spent more than you have? An income deficit is actually very common, but a personal budget can help you to correct this. Once you know where you spend your money, you can decide which expenses can be reduced or eliminated.