Do you need help with how to prepare a budget? Most of us don’t want to admit it, but we do need help. Here is a budget that I set up for myself that will give you a good idea of how to prepare a budget.

Expenses

Rent – $450 per month due on the 5th of each month

Car payment – $139 every two weeks or $295 per month

Electric bill – $40 a month (roughly) due on the 19th of every month

Gas bill – $59 a month (roughly) due on the 14th of each month

Car insurance – $158 a month due on the 20th of every month

Health insurance – $50 a month due on the 1st of every month

Gas – $55 a week or $240 a month

Food – $35 a week or $152 a month

Cable bill (including internet) – $80 a month due on the 25th of every month

Child Support – $75 a week or $325 a month

Car repairs – $50 a month

Oil changes – $10 a month

Haircut – $25 a month

Entertainment – $150 a month

Savings – $166 a month

Tithing $250

Now since I am a server and bartender I make cash on a regular basis and it is a bit hard for me to predict how much I am going to make each time I work. This budget is set up on a $2,500 take home income. This is considered a low income month for me and my bills that I have to estimate are high estimations.

This allows for some extra at the end of the month so that I can save more money and maybe buy something nice for myself. I stick to this with discipline and I use a system of envelopes. I have a bad habit of spending money if I know I have it so what I do is I allow myself a spending amount each week for little things.

This is usually around $15. Then, every night when I get home from work I take what I have earned and I put it into envelopes. I have one for each category. At the end of the week I make adjustments if I made more than planned for that week. Usually these adjustments are paying off a bill sooner than needed or saving more money.

By doing this I am able to stay within my budget and cover myself if a bad week does come into effect.

Now if you get paid by check, then you will have a much better idea of what you are going to make. I suggest that you set up your budget based on your average work week, if you don’t get 40 hours, and if you work overtime only ever budget for 40 hours. Treat overtime as extra and save some of it, use some for entertainment, and save some more.

Preparing a budget is not hard, but you will have to be disciplined to stick to it. Learn how to prepare a budget and you will be very happy you did.

Are you trying to set yourself up on a budget so that your financial life is easier for you to manage? Do you want to know where your money needs to go each month so that you can plan correctly and take care of all your expenses? There are a few different theories when it comes to how to write a budget, but there is only one way to make sure you are not surprised by expenses you do not think about. Here is the correct way to write your budget.

You need to start with all of your expenses. This means you need to get a list of everything from your utility bills, mortgage or rent, car payment, insurance, to your license fees, car registration, oil changes, Christmas spending, birthday spending, and everything else in between. Anything that you spend money on in a years time needs to be included in your budget. If you forget about the quarterly or annual expenses you will be surprised by them and it will throw your budget off.

Next, you need to weigh your expenses against your income. Break any expenses that are not monthly down into monthly expenses to make it easier to work with. Then, you need to add them all up and subtract them from your income. The amount you have left is what you are allowed for savings, entertainment, and other things that are not necessities for your survival.

If you are not happy with the amount that is left over, then it is time to look at your expenses closely and figure out what you can live without. You might have cable television just so you can watch one show a week. Maybe that show is offered on the internet for free. Maybe you barely ever watch your television and that is an expense you can throw out. There are many other needless expenses that are usually in our budgets. Take a close look and eliminate anything that is not necessary for you.

Last, you need to figure out how much you are willing to waste on entertainment each month. This is your nights out, your movie rentals, and other things we do for enjoyment. There are many ways to make cuts here and still have a great time. You also need to figure out how much to save for general savings, vacations, emergencies, and other things you might be saving money for. This is how to write a budget the correct way and make sure you do not leave anything out.