|
Live On a Structured Budget Without Going Crazy |
|
|
|
|
Live On a Structured Budget Without Going Crazy Managing your money can be fun (and very easy). Here is a simple way for beginners to plan your spending.
Steps - Create a calendar. It's best if you use a traditional wall calendar format on regular paper.
- Figure out how much you make each work day after taxes. (Your net daily wage) $15 an hour for 40 hours is about $80 a day, 5 days a week.
- Block out each work day with your spending. If rent is $400, and you make $80 a day, block out 5 days on the calendar. RENT, RENT, RENT, RENT, RENT. If you pay $80 a month on gas, block 1 day out on the calendar. Repeat for all expenses until all work days are full.
- Don't forget to add "fun", "savings" or scheduled special events like birthday presents.
- Create a calendar for the next three months. Do it in one sitting.
- Carry that month's calendar around. When you want to spend unbudgeted money, refer to the calendar and see where you can "get" the money. Update the calendar.
- Start thinking of your money as blocks (aka days) and refer to your calendar often.
Tips - This is a very positive method of budgeting. If you like clothes, and you spend $80 a month on them, block it in.
- Carry it with you. You blocked $80 for clothes, you want to buy a $80 pair of jeans, refer to the calendar. Decide if you want to blow a block (aka day's wages on one item).
- Mentally keep track of your blocks. $80 on clothes block At $10 an item, you can buy 8 items a month. Spend accordingly.
- Block to match your paychecks and due dates. Rent due on the 1st, but you get paid on the 5th, block the days prior to your previous paycheck.
- Block in your debt, focus on reducing it.
- Let your friends know how you are managing your money.
- Read "Your Money or Your Life" by Joe Dominguez and Vicki Robin
Warnings - Don't budget every penny or even dollar just half or full blocks.
- Don't disregard the budget.
- Don't block out the days you don't work, you aren't making money on those days. Leave 'em blank.
- Don't spend more money than what you've blocked.
Related Tips and Steps This article has been sourced from WikiHow a wiki building the world's largest, highest quality how-to manual. Content on wikiHow can be shared under a Creative Commons License. |
