3 Easy Steps to Get Started With Your Budget

A budget can seem overwhelming, stressful and sometimes, boring! But a budget is the key ingredient to paying off debt and saving for those things in life that matter most helloooo vacation! 

1. Track your current spending

Look at your spending from the last couple of months and get an average for money spent in each category. Think of categories as buckets your transactions fall in - restaurants, clothing, hygiene, monthly bills, subscriptions, etc.

2. Outline a budget with your new and improved spending habits

After you know how much you currently spend in each category, add up all those categories and see if you are spending more or less than your current income. You may need to do some adjusting. If you are spending more than your income, you will need to decrease dollars assigned to categories. If you spend less than your income, where should that remaining money go - saving for a new car, a down payment on a house, your 401K?

3. Start budgeting!

Now is the time to follow your new budget with the goal to stay at or below the spending limit for each category. Be sure to track each expense so you know if you are getting close, or going over, the money assigned to each category. A budget is not perfect so continue to track your expenses and adjust your budget with each month.