How To: Budget your Money

Budget your money person holding paper near pen and calculator
If you are on a fixed income or need to save money its probably best to start by creating a budget for yourself. Whether you need to pay off bills or just are in need of saving money for future projects or events it’s never too late to start. Whatever the reason behind wanting to budget your money should be the push you need to choose your budget and stick with it.

Determine Income/Expense

The first thing you should do is figure out how much total income you make as well as total household bills and debts that need to be paid. If you have the ability to pay your bills online this will save you time and money in the long run. Also, you will be able to calculate how much they exactly are if you are paying them at the same time.
Bills that are common for most individuals are things such as mortgage payments, car payments, normal household bills, and food. Try to fix your budget so you’re paying bills that are a must and leaving a bit of extra for an occasional splurge. While you still need to have the freedom to go out or spend on yourself occasionally you will have to be serious about how to budget your money or you will fail.

Where to Put Your Money

Once you have figured out your budget you should invest the money either in a CD or savings account that will gain interest. Try to put money into your savings account out of each paycheck or a part of the extra money that comes in. Aside from your savings account if you are in need of paying off bills then split a part of your paycheck to go towards the savings account while the rest of it goes to paying off high-interest credit cards or loan payments.

Goals and Stress

By setting a budget your finances you will not only help to reduce the stress of financial worries but you will also slowly be taking on a more responsible you. By this I mean you are learning restraint and responsibility at the same time. This will benefit you later down the line when you actually need to purchase an expensive item or need a loan for a must-have such as a house or automobile.
You should always try to work towards your goal monthly and if you happen to slip don’t be too hard on yourself because it will take time to change your lifestyle especially if budgeting is a drastic change from what you’re originally used too.


While it may seem that you are the only one who is currently struggling with the way the economy is today many others are in the same shoes and needing to learn to manage their money better as well. There are also counselors that can provide you with tips on how to budget your money and to plan for the future. Keep in mind that regardless of how bad things may seem if you are willing to put in a bit of work you can fix any issues even if it takes time.