Budgeting is made out to be harder than it really is, so here’s the simple break down:

Know How Much You Make

This is the first place to start because you need to know how much you make every month in order to cover your bills, have fun and still put money into your savings. It’s also important that you’re making more than what you need to spend.

Know Your Expenses

Since you know how much money you are bringing home, do you know how much your expenses are? Sit down and create a category for each bill you have, such as car payments, rent, phone bill, etc. For each category, calculate how much that bill is and total all of your bills together. With what is left over you can use as play money or stick it in your savings. Do not forget to keep your receipts so you can track your spending.


It is important to know that depending on how much you make and when you sit down to create a budget that you are going to have to make adjustments. This is the hard reality of adulthood. However if you need to spend less on activities in order to cover rent, that’s something you will need to adjust on your budget.


Another big part of budgeting is to keep in mind that you need to pay yourself. If something were to happen to your job or to your health you need to have a plan b. That is your savings. Do not get so caught up on having nice things that you forget this because things do happen. In each pay check you should try to put away at least ten percent into your savings for emergencies.

You can create your budget using Microsoft Word or Excel. Do not have unrealistic expectations when creating your budget so you do not spend too much time on making adjustments. The first month of budgeting is the hardest. However, any month after that your budget should stay the same unless your income changes or your expenses change.