Some of us use online budgeting tools; others have a detailed budget that we've created ourselves, and then there are those of us who are completely unorganized and have no idea how to create a budget. In this article I will explain how to create your own budget on paper, and I will also include links to free budgeting websites.
Organize all your billsThe first thing you're going to want to do is gather up all of your bills and receipts. If you don't have receipts for the things you buy, that's okay. Organize them into piles. Example: one pile for your rent or mortgage bills, one pile for your electric/water bills, one pile for credit card or loan bills, etc. Once your bills are all organized you're ready to begin creating your budget.
Creating the outline for your budget
Next, on a blank sheet of paper, write down each of your bills, when they are due, and how much money you must pay. After you have written them all down, come up with a two to three letter abbreviation for each bill. Example: water bill=WB, credit card payment=CC, mortgage=M. Now, take a new blank sheet of paper without any lines on it and you're going to create the outline for your budget. Count all the payments you need to make in a month, including money you will put into your savings. You also need to count money you spend on eating out, leisure activities, and groceries. Every single thing you spend money on should have a category. After you have the total number, create that number of rows, plus a few extra. Example: if you have a list of 20 things, you should make 25 rows. Now, make a column on the left side that is about an inch wide. On the fourth row down, start putting in the abbreviations you came up with for each bill. When you reach the bottom you should have a couple of empty rows.
Filling in your income information into your budget
Now in the top row of the paper in each column write in the date you will be recieving each check from your place of employment. In the row below that is where you will write in how much each check will be for, if you don't have a set amount for each check, wait to fill in these cells until you recieve the check or at least know how much it will be for. If you can write in an estimate that will work as well, but when using an estimate, always round down. You'll want to round down with an estimate because this way you will never have less money left over than you thought you were going to.
Adding your bills and payments into your budget
Now, in each column next the abbreviations for your bills or payments to be made, write down the amount each payment will be underneath the check it will be coming out of. Once you have filled in all the information necessary, in the row underneath all the abbrevations, write the total amount spent out of each check. Subtract that from the check itself and put that number in the row below that. That is how much money you have left over after all your bills are paid.
Keep up with your budget and update it on a regular basis
It is very important to keep up with your budget. You should work on it every week and keep it up to date. Track your spending so that you can add to your budget if necessary. Good job! And in case making a hand-written budget is too complicated for you, or you just don't have the time, here are some links to free budgeting websites.
Free budgeting websites
Mint.com
Samantha Schulz - Samantha Schulz has been writing since the age of 5. She enjoys writing poetry, short stories, and informational articles. She recieved a ...
