How to create a monthly budget in 8 easy steps. Step #2: Take Charge.

Create a monthly budget that rocks in 8 easy steps.  Step #2: Take Charge.

Now you know how you have been spending your money, no more guessing.  Take charge and tell your money what to do.  Download the monthly budget Excel file.

Take Charge:

1. In the same place you recorded where your money went last month, tell it where to go this month.
2. Rearrange your money and record your new plan in the ‘budget’ column.  Tell your money what to do.  Starting with your income, divide your money up amongst the different categories.  When you add up all the spending, giving, investing, paying, and saving you plan to do this month, it should equal your income to the dollar.
3. For every category that you reduce spending in, you get to increase spending (or saving) in another category by the same amount.  You will have the same amount of money coming in and going out, just re-arranged.  Create a plan that works better than the one you have been using.

Here are the 8 steps:

1. Bank Statement
2. Take Charge
3. Find The Difference
4. New Budget
5. Cash Only
6. Monthly Cash Savings Goals
7. Debt – Assets = Net Worth
8. Summary

-Derek