How to Develop a Budget?

If you are creating a budget for yourself then you need to first look at all the money that you have coming in. Then list all your expenses such as rent, electric, phone, cell phone, water, food, entertainment, insurance, gas and tolls. You need to look at everything you spend money on today and compare it to how much you spend. If you are spending more than you make then you need to trim what you spend. You can get rid of some expenses by buying clothes that don’t need to be dry cleaned. You can also decrease your budget for entertainment and find ways to do things for less. Once you know all your expenses you can take the money you need and divide it into money for rent and bills and all other money. When you are paid you treat the money for rent and bills as a separate ledger item and widthdraw it from your available money. This will show you what you have left to spend. Don’t forget to plan for saving some money as well.