How to Set Up a Budget

If you want to change your life, you’ll have to change your spending patterns. While we can help you become debt free you won’t stay that way on your own. That’s why you need to make a budget, here’s how.

• Write down your income – how much money do you take in? How much of it is steady?
• Write down your fixed expenses –rent or mortgage payments and car payments, for instance, also insurance payments and utility bills.
• Subtract your fixed expenses from your income – what’s left is what you use for your other expenses such as food and clothing.

This is your initial budget, but you’re not done.

• Track your spending – does your actual spending look like your budget? What didn’t you take into account?
• Identify necessary expenses when money is tight. Then prioritize, making sure the most important bills get paid first.
• Evaluate your progress – Are you meeting your goals? Can you live on your current income? Do you need to find a better job