- 1). Make a list of all of your sources of income. If the amounts fluctuate list the smaller amount. If you receive anywhere from $800 to $1000 on your paycheck, list it as $800 to create a buffer of extra cash when you do get the larger payout.
- 2). List your expenses by starting with your rent or mortgage payment. If all else fails this is the bill to make sure gets paid first.
- 3). Write down all of the utilities you pay each month including electricity, phone, heat, water, and cable. If these amounts change from month to month, use the higher end of the amount for your budget. If your electricity costs anywhere from $50 to $70, list it as $70 so you have wiggle room if the bill comes in under $70.
- 4). Include any loan payments or credit card bills. These should also be based on the higher of the billing amounts. These can include cars loans, student loans, or even financing you may have used to buy furniture. Also include insurances that you may pay for your car or home.
- 5). Take the estimates of how much you spend on food and gas, and other rolling totals and add them here. Keep them listed by the month. In other words, if you get groceries weekly, overestimate the cost and multiply it by four to get your monthly spending amount. If clothing, books, golf memberships, movie tickets, or anything else occurs regularly in your life, be sure to include them here as well.
- 6). Calculate a final total of all your income and then add up the total of all of your expenses. Once you have those numbers, your income should be a higher number than your expenses, if not, consider cutting some wants out of your budget or getting a second or third source of income to make up the difference.
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