A budget will help you understand your spending patterns and gain better control over your money.
Creating a budget helps you to understand where you spend your money and discover areas where you can save. It also allows you to prepare for life’s challenges such as loss of employment or illness, or save for a big purchase such as a car, vacation or school.
Many people find the idea of creating a budget intimidating, but we’ve created a handy list to get you started:
- Identify monthly bills such as cell phone, cable, utilities, insurance, gym membership, etc.
- Use your bank statement to list daily banking purchases you make using your debit card or checks
- Understand and list your outstanding debt such as a credit card, auto loan, student loan, mortgage and/or rent
- Keep up with receipts for when you pay in cash
- Document your income sources