Many people have asked me what is the first step in setting up a personal budget. If you have ever tried to fill out a budget you know it is impossible to do it right unless you know exactly how much you are currently spending and on what. How much do you spend eating out each month? Exactly how much do you spend in gas? Groceries? If you are like me when I started I didn’t even know how much my utilities where every month.
So prepare yourself by tracking every aspect of your spending for one full month. Write down how much you spend on everything. At the end of the month it should add up to exactly your income for the month. Once you do this you can easily fill out a budget worksheet or enter it into a budgeting program. This first step can be difficult if you are not used to doing it. But with a bit of work you will know where you are starting from so that you can get going down the road of taking control of your financial life.
