People in modern times need to learn how to manage money and understand how financial matters effect their every day lives. Millions are in debt, and it's not just the individual that is plagued by this, the world is in debt, and many will never dig themselves out of it. For those that are continually looking down the barrel of creditors, it's time to rise up and change things. In order to change it's crucial to learn how to start a budget. It is not hard, it is not going to cause stress, but it is vastly important for the generation of wealth for the future. Consider the 3 first steps below and then progress as time goes by.
1. Write Bills - On a sheet of paper or an online document write down all the bills that you have. No matter how many things you have to pay, write them down with the dollar amount. Do not include expenses that occur, just bills. Rent, cable, car loan, and other items should go here with the full amount that is spent on each per month. The next thing to write down is the amount of money you make each month. You can break this down into four sections or two sections depending on how you are paid. Whatever the case is, write down the dollar amounts based on your best estimates.
2. Add It Up - Add the column of bills together. Get a full dollar amount at the bottom of the entire list and see how much it is. If the bills are more than you're making a month, you're in trouble. If they are less, then you are in luck, there is room to breathe.
3. Starting the Budget - Take all the bills and place them in a solitary column, these will be the beginning of your budget. Subtract the bottom total from the amount of money you make a month. Whatever is left over, you need to separate into different columns of needs. The essentials are food, water, clothing, and entertainment. If you have these things taken care of with a dollar amount, then move forward to see what's left. Whatever is left, save it, and don't spend it.
The above three steps makes learning how to start a budget all too easy. If you're looking to figure out how to begin, then you're in luck; you can't lose with the aforementioned ideas. Even those that are not familiar with the idea of budgeting will learn how to start a budget easily.
Sandy Phillis is the author of Budget ideas http://www.howtostartabudget.com/ Here I have discussed various budget plans for many life occasions, ratings on budget plans and a free video to watch. Take a look at my site http://www.howtostartabudget.com/ to start your budget plan now
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