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Budgeting is Essential to your Overall Well-Being
When I didn’t have a monthly budget I was completely lost financially. I had no idea where my money was going and I was stressed out because I would run out of money before the month was over, which led me to use credit cards and get in debt. It took me years and a budget to get out of debt.
Before deciding on what budgeting style will work for you, track all of your espenses for at least one month. The ideal amount of time to track your spending is 3 months as you will be able to come up with an average amount of spending for each category. Write down every single dollar you spend and what it was spent on. You can do this by carrying a note pad in your purse or downloading a spending tracker app. Some would say that you can track by using a debit or credit card, but since some items are paid for in cash or automatically deducted from our accounts, I believe that when just starting, the note pad and app will provide the most reliable numbers.
Once you have tracked your spending for at least one month make a list of the categories that you spent money on. Here is a list of the most common household expenses: groceries, household items, gas, entertainment, gifts, savings, debt, healthcare, personal (education, toiletries), childcare, pets
Budget Method #1
