Creating your first Budget!

When creating your first budget, the main thing I found was to keep it both simple and flexible. The budget should be straight forward and easy to use, but require frequent updating to ensure it is followed. A budget does not work alone by itself. It requires a periodic update and it requires a following otherwise it doesn't do any good.

I found that once a budget is in place, in the beginning, for the first month or so, it should be glanced at every other day just to make sure it is being followed. This creates an expectation that there is a budget to be followed and it cuts down on expenditures which may seem small in comparison, such as a few dollars but add up fast if not paid attention to. For instance, 2 doughnuts and a coffee every morning might seem like a small, 5 dollar purchase but over a course of a month, that adds up to $120.00! This is no longer a small purchase, it needs to be a budget line item.

Budget line items should be specific - stay away from something called "Miscellaneous" because the temptation is too great to just throw things in there that add up fast. Try to be specific but at the same time, make sure you are able to reorganize your budget as you go along if needed. For example, if you think your monthly gasoline expenditures will be $200 per month, but turns out to be $75 per week, make sure you update your budget to accommodate the extra $100 per month or you will run short.

The hardest part of budgeting is writing one - I have already done this for you. There is a ready to go budget worksheet that will work for most people on this website that you can purchase for $5.00. Once purchased, watch the video on how to set up your first budgets and then start engaging in the conversation and the support group I am building to ensure you not only get a budget, but stay on budget!

Las