How To Make A Budget
Budget the Quick and Easy Way

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This is how to make a budget the quickest and easiest way I know how.

Sample Budget

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How To

1. Do this budget whenever you receive income or when an unexpected expense comes along.

   Enter the period of days the budget will be used, not just the date you do the budget.

   How To Make A Budget:
   Whenever you receive income.

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2. There are 5 columns we will use:
   
   

   1. Due - List the due date for bills, debts or event expenses

   2. Item - Your budget categories. Keep it simple, and group them in logical sections

   3. Amount - How much money is allocated for that particular expense

   4. Balance - A running total of how much money you have left to budget

   5. Notes - How you are going to pay each expense

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3. Write down the income(s) you are budgeting:
   
   

   I have listed my "Paycheck" for "$1,000" in the Item and Amount columns.

   Then I put my available amount to spend in the Balance column.

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4. List your expenses:
   
   

   Group them in a way that is logical for you. I always put Give and Save at the top.

   Then I list my cash-only expenses, Gas, Groceries and Fun. (To keep it simple Gas includes any expense for transportation; Groceries includes food, household items, medicine, etc.; and Fun includes my personal spending cash, eating out money, blow money... whatever.)

   How To Make A Budget:
   Group expenses logically.

   I also underline my cash-only amounts to make them easy to total.

   Then I list my bills and debts, followed by any other expenses. I use the Due and Notes columns to remind myself when and how I will pay each expense. (For example: Withdraw cash from ATM, Pay a bill online, Make an account transfer online, or Write and mail a check.)

   The last amount, Carry over to next week, is what is left after budgeting. I give it a budget expense line so I can account for all of my money.

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5. Enter your expense amounts:
   
   

   List the amount of each expense in the Amount column.

   Subtract each expense from the amount in the Balance column as you move down your list of expenses to create a running total of how much money you have left to spend.

   Like this:

   

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6. Adjust your expense amounts until you have a ZERO (0) ending balance:
   
   

   A ZERO (0) ending balance shows you have budgeted all of your money. You know where each dollar will go, even if it simply remains in the bank.

   How To Make A Budget:
   Zero-out your budget.

   Our biggest difficulty is reaching ZERO before we reach the end of our budget! However, the point of this lesson is that we need to account for all of our money, whether we have too little or more than enough.

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7. Now do it!
   
   

   This is how I use my household budget:

   

   1. Write and mail checks, like giving to my church.

   2. Pay bills online, like my electric bill.

   3. Make online account transfers, like $100 from my checking to my savings account.

   4. Add up my Cash expenses, and create a cash budget for the money I withdraw from an ATM.

   Like this:

   

   Notice that I subtract each expense from the total to doublecheck my math.

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This is the easiest and quickest way how to make a budget.

Do you have questions about budgeting money this way? Contact me.

My family has been using this method for years. Creating a household budget is the most rewarding "chore" we do together. We have financial peace because we know how to budget money.

Now, read the 3½ Tips on Budgeting to change your life!