Budgeting may be overwhelming if you have no experience controlling your finances or if like many you have never even worried about balancing your checkbook.
The problem we face as a society is that we got use to having everything the easy way, and we have gotten lazy even when it comes to managing our own financial life.
This makes it really hard for some people, because they don't even know where to begin when it comes down to getting on top of their finances.
In this article I will give you some points that will send you in the right direction towards helping you to gain control of your money and where it is being spent every month.
Usually we don't even keep track of our expenses and because of this it is hard to determine where we are overspending or even wasting our money.
Not every spending habit is good for your life and sometimes we develop habits for so long that they are hard to get rid of, mostly if we don't even know which habits in our lives are not the appropriate ones for our personal living and individual income.
The first thing you are going to do is make a spreadsheet, you don't need anything complex.
Simply write down all your monthly expenses on Excel or on a piece of paper, whatever is easier for you.
On this spreadsheet you will write down your rent or mortgage, electric and gas bills, cable, cell phone and any other bill you have to pay every month.
Once you have all the monthly bills you have to pay added up and get a total so you know how much you have to spend every month on your bills, get the total of your household income and to your total monthly income rest the amount of money you pay in bills.
The amount left after subtracting your expenses to your monthly income is the total you can manage according to your needs.
In this total you have to consider gasoline, food, an extras that depend on your personal life, for example; If you have a pet you have to count any expenses that regard your pet.
This is the simplest way to know how much money you really are working with every month and from there you can better decide if certain things are worth spending money on or not.
The most proactive way to do this is by separating that left over amount into different categories.
plan how much has to go for groceries, how much will go for your cars gas, and even leave some money for some fun if it's the responsible thing to do.
Once you create the list with your monthly expenses, you don't have to do it again because those are the bills you pay every month so you just have to apply the same expense or bill list to every month.
Once you have this down you can check if you are overpaying on any service, like cell phones, cable or others.
It is always good to look for ways to save money on your bills.
Think about it this ways, if you lower your bills you have more left for other things including more money for fun activities or even to invest.
Being on top of your finances is easy and ultimately will help you save money so you can have more money for yourself.