A budget is a plan of how you will spend your money. Budgeting is not just about pinching pennies but rather creating a plan to reach your financial goals.
How Budgeting Helps
- Help Reach Your Goals
Budgeting helps you save for things like a car, a home, or a vacation. - Control Spending
With a budget, you can avoid overspending and make smarter choices with your money. - Get Rid of Debt
By sticking to a budget, you can pay off debt faster and improve your credit score. - Save for Emergencies
A budget can help you prepare for those unexpected expenses. - Save for Your Future
Dedicating money to saving and investing helps you save for your future.
Steps to Creating a Budget
Creating a budget doesn't need to be complicated. Here are some steps to get started.
- Estimate Your Monthly Income
List all the money you make each month from your job, side gigs, or any other sources.
- Identify and Estimate Your Monthly Expenses
Look at your expenses from the past month and calculate how much you typically spend each month.Write down everything you spend money on, from rent and groceries to eating out and entertainment.
- Create Your Budget
Now that you know your income and expenses. Create a budget using a worksheet, spreadsheet, or app. Make sure that your essential bills are budgeted first.
Budgeting Tips for Success
- Automate Savings
Set up automatic transfers to your savings account so you don’t have to think about it. - Get Everyone Involved
Budgeting is easier when everyone in your household is on board. - Stay Flexible
Your budget might need adjusting as your circumstances change. - Try Budgeting Apps or Online Tools
There are several apps and tools available to simplify the budgeting process.
Budgeting Resources
Budgeting Worksheets and Apps
- Monthly Budget Worksheet
From the Federal Trade Commission. - Another Monthly Budget Worksheet
From the Consumer Financial Protection Bureau. - Kiplinger Budget Worksheet
From Kiplinger Magazine. - List of Budgeting Apps
Forbes Magazine.
Budgeting Guides and Tips
- How to Create a Budget and Stick with It
Consumer Financial Protection Bureau. - Budgeting Tips for College Students
Department of Education. - Healthy Eating On A Budget
From US Dept. of Agriculture
En Español
- Cómo hacer un presupuesto y mantenerse en él
Consumer Financial Protection Bureau - Una herramienta fácil para vigilar sus gastos
Consumer Financial Protection Burea - Hacer un presupuesto
Federal Trade Commission - Haga un presupuesto
Federal Trade Commission