BUDGET SYSTEM HOW TO
BUDGET SYSTEM FREE

When you fill up the gas tank, subtract that from the gas budget line under Transportation. When you pay the rent, subtract that expense from Housing. When you make $100 from your side hustle, add that to the side hustle income. That means any money that comes in or goes out gets put into the right budget line. You’ve got to get in there and track your transactions. That gets you literally nowhere with your money. So, you can’t just set up that budget and leave it. That’s it for making the zero-based budget, but we’ve got two more steps that’ll help you actually stick with it. You can also up your income by starting a side hustle, selling stuff, or finding some other way to make extra money. Meal planning can help you get the most out of your food budget.) (FYI, start with the restaurant line! Food is where we Americans tend to overspend the most. That can mean lowering your planned spending amounts where you’re able, or it can mean cutting spending. Get out your metaphorical hedge clippers, and trim that budget. This means you’re spending more than you make, and that just won’t work.

Now, let’s talk about what to do if you subtract your planned expenses and end up with a negative number.

BUDGET SYSTEM HOW TO

(Aka how to win with money.) They are the seven money goals that will take you from where you are to where you want to be. The 7 Baby Steps are the proven, guided path to save money, pay off debt, and build wealth. Got money left over? First, throw some confetti and do a celebration dance. Practically no one gets this right the first time. If you don’t hit zero at your first pass, welcome to the majority! Yep, that’s right. When you subtract all those expenses from your income, it should equal zero. Subtract your expenses from your income to equal zero. That way, anything that pops up unexpectedly isn’t a problem-it’s in the budget.ģ. Month-specific expenses (Any holidays, celebrations or semiannual expenses due this month?)ĭon’t forget to give yourself a miscellaneous category too so you have a little extra cushion in your spending.Extras (Here’s the fun part: entertainment, fun money, restaurants, etc.).Other essentials (We’re talking about insurance, debt, childcare, etc.).The Four Walls (These are the top bills to cover: food, utilities, shelter and transportation.).Savings (This depends on your Baby Step, which we’ll explain later.).Giving (This should be 10% of your income.).Think of everything you spend money on during the month. You know what’s coming in-now plan for what’s going out. If you want to start on paper to get all these numbers down, and then switch over to EveryDollar, that’s cool too. Write it all down and add it up! That’s your total monthly income, aka what you’ve got to work with this month. What counts as income? Your regular paychecks and anything extra you plan to bring in during the month (think side hustles or child support). Because the math that’s coming up is way easier with EveryDollar.)

BUDGET SYSTEM FREE

You can do this the old-fashioned way with a sheet of paper, or you can use our free budgeting app, EveryDollar.

You can also check out these budget percentages and averages. They come in handy when you’re wondering how much you normally make or spend on stuff. Before you start making your zero-based budget, log in to your bank account or grab those bank statements out of your drawer.

Budget system