How To Budget My Money

Breaking into the real world on your own can be rough when your money isn’t endless, but knowing how to budget your money can make it easier. Whether you discover that you have a surplus of money or you need to make more money, your budget let's you know exactly what you need. It is starting point to decide what you need to do.

1. Examine your financial situation often. Before you get your paychecks, whether it is weekly, every two weeks or monthly, immediately write out where the money has to go. It is important you do not spend money before you know where you stand.
2. Make a list of everything you need to cover, such as rent or mortgage, car expenses, gas, credit card payments, utilities, groceries and tuition for school. Next to each item include an estimate on how much it will cost that month.
3. Add all these estimates and compare that total to your paycheck. If you see that your paycheck will not cover all of these expenses, you may want to examine other options, such as moving to cut costs or getting a second job. If your paycheck will cover all of your expenses with some money left over, make sure you put some of the extra cash aside to save.
4. Save some money. You need to have some money as a cushion for emergencies. Saving at least ten percent of your paycheck if you can will work out in your best interest. What is left over after covering all of your expenses for the month and putting away your ten percent can be money to be spent on whatever you would like to spend it on.
5. Be smart with your money. Don’t spend what you know you can’t afford. A night out with your friends may be tempting, but you should stay home if the cost of that night out means you will be late on your rent or car payment. Set priorities when it comes to your paychecks and stick to them as hard as it may be.