How to have a budget

Having a budget sounds easier than all the work that actually goes into it. There are many apps that can help you with this, but I find that it is easier to do it my own way.

BILLS

The first thing you need to do is figure up your bills. I like to budget in a large steno pad, one side naming the bill, and the other side naming the estimated price and the actual price. I do this to track how well I have been conserving electricity and water.

If you haven’t considered cutting cable, I highly recommend it. I only pay for Netflix, Hulu and the internet and I don’t miss anything, but I save over 80 dollars a month. Also, this is coming from someone who is addicted to television.

In addition, some electricity companies offer online services that help you monitor your electricity usage. I use a site called My Usage, and I get an email every night telling me how much money I spent on electricity the day before. I also get alerts when I spend more than my set amount.

As you receive the bills for the month, update the actual price column. Always estimate your bills up, so if they are over, you wont have a surprise in your budget.

THE THREE FS

The next things you write down are the three F’s: Food, Fuel and Fun. Budget how much of your income you want to allow in each. I make an additional rule that I can only go out to eat on whatever I did not use the month before in my food budget. This prevents me from spending all my money on Panera Bread and Whataburger.

I also use apps like Ibotta and Mobisave to save money at the grocery store (check out this post to see more information). I am a dedicated couponer, and it saves me so much money over time.

As for the Fun budget, this is for the occasional stop by Sephora or TJ Maxx. The Fun budget is not for all the money you don’t spend on bills (if you are fortunate to have any extra). It’s important to remember that just because you have left over money, doesn’t mean you need to spend it all. You never know when your car will be break down or you will need an emergency tooth removal.

The fuel budget will change over time to meet the current gas prices. As of right now, the gas prices are relatively low, so the budget gets to be lower.