Budget Made Simple

When you do with your money what you said on paper, you don't have to feel guilty when you spend it.

Here you find ideas of how to make simple follow these four easy steps to take control of your money.


Step 1

Step 1: Write Down Your Total Income

This is your total take-home (after tax) pay for both you and, if you’re married, your spouse. Don’t forget to include everything—full-time jobs, second jobs, freelance pay, Social Security checks, and any other ongoing source of income. On a piece of paper and pen in hand every month write down tor total income, be the number on police of your money it starts here.


Step 2

Step 2: List Your Expenses

Think about your regular bills (mortgage, electricity, etc.) and your irregular bills (quarterly payments like insurance or HOA) that are due for the upcoming month. After that, total your other costs, like groceries, gas, subscriptions, entertainment and clothing. Every dollar you spend should be accounted for. Track your spendings even though every month is different irregular expenses can vary from month to month, follow all regular and irregular expenses on paper every month.


Step 3

Step 3: Subtract Expenses From Income to Equal Zero.

We call this a zero-based or EveryDollar budget, meaning your income minus your expenses should equal zero. When you do that, you know that every dollar you make has a place in your budget. If you’re over or under, check your math or simply return to the previous step and try again. Your giving, emergency fund, debt cancellation, and pay yourself is a vital part of your planning.


Step 4

Step 4: Track Your Spending

Once you create your budget, track your spending. It’s the only way you will know if your spending is aligning with your plan. EveryDollar makes tracking your expenses (and budgeting for them) extremely easy. Visit EveryDollar.com to learn more! I have had the best experience with EveryDollar but pen and paper are a vital part of my budget brain.

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