HOW TO CREATE A BUDGET AND STICK WITH IT

Spread the Love. Share and Enjoy!

KNOW WHERE YOUR MONEY GOESAre you struggling to keep track of where your money goes? Do you need a budget but just can’t seem to sit down and create one? Let me show you how to create a budget and stick with it!

 

UNDERSTANDING A BUDGET


Budgeting is one of those things that is a fairly simple concept, but harder to make and maintain. However, you do need a budget! Why? Well…how are you doing without one?

Budgets can be explained simply as ‘money in’ and ‘money out.’ They remind you how much money you have coming in, so you can freely spend what you have once the bills are paid. Let me show you how I budget and how easy it can be!

 

EVERYDOLLAR


I use the program designed by Dave Ramsey for my household budget. I find it easy to set up and easy to you. You can set it up directly from your computer and even download it in app form. Best of all, the FREE option is all you need!

 

SET UP

First, head to everydollar.com to create your free account.

  • Create Your AccountCreate Your Account

  • Verify Your Emailverify emailtake me to my budget
  • Begin Setting up Your Budgetstart my first budget

     

    CREATING YOUR BUDGET


Now let’s get into the numbers! The first thing you will notice is that there are 2 columns. A PLANNED column and a RECEIVED column.  Input how much you plan to receive for the entire month under ‘planned.’

The default setting will call this PAYCHECK 1, but you can edit it by highlighting and typing in your preference. For example, McDonald’s check, etc…Income for MonthIf you want to track more than one income source, simply click the ADD INCOME button. Add the amount you received, the date, and from what source.add income in every dollarAdd new incomeIf you receive multiple payments in one day from different sources, you can click the ADD A SPLIT and input both at the same time. For example, $500 from McDonald’s and $200 from Birthday Money, etc…

 

ASSIGNING A PLACE FOR EVERY DOLLAR


Now, you will repeat the same steps you used for adding your income to assign a dollar amount to each category in which you spend money.

They give you suggested categories, but you can add/delete/change the name of each one. For example, they give you a Housing Tab with Mortgage, Water Bill, etc… Simply add what you expect to pay for each in the given month. You can change Mortgage to ‘RENT’ if it fits better.

You will do this until your ‘budget amount’ is equal to the amount you planned on receiving. adding to categoriesDo this until you have created an EveryDollar Budget. You will see a PLANNED and a REMAINING tab. As you keep a record of your transactions, you can click on the REMAINING tab and change it to show how much you’ve spent for that particular category.

As you hover over a specific category, simply click on it and choose add new to record your transaction. click and add new

 

STICKING WITH IT


Creating your budget is only half the battle. Once you have it set up, you need to remember to record your transactions. You can try to record them after every transaction, but I prefer to set aside some time a specific day of the week and do all the week’s transactions at once.

For example, I try to go through my bank account and match up the transactions on Friday afternoons. That way, I know how much money I have left for the month and can plan my weekend and the following week accordingly.

It takes time a discipline to set up a budget and stick with it. But once you make it a habit, it’s truly a freeing experience. You don’t have to feel guilty for spending extra money for the month because you’ve decided beforehand what to spend those extra dollars on. Now, you can tell whether you have enough to eat out, or if staying in is a better option for you to reach your goals.

 

EVERYDOLLAR PLUS

EveryDollar’s free features are sufficient enough for anyone to successfully create and maintain a budget. But they do offer a PLUS feature that automatically pulls each transaction from your bank account.

The cost is $99/year which makes it $8.25/month. If you struggle to sit down with your bank statement and record every transaction, this might be a good fit for you. Sometimes an extra $8.25 a month is worth your sanity and if it makes your life a little easier – go for it!

 

EXTRA FEATURES


Even the FREE version of EveryDollar will allow you access their extra features coined by Dave Ramsey as “Baby Steps.” These are 7 steps you can take to get out of debt, create an emergency fund, build wealth, and secure a financial stress-free future.

My husband and I have followed these 7 steps and currently use EveryDollar for our budgeting needs. It takes time and discipline, but we hardly ever have to stress about where our money goes.

Keep your eye out for more to come on these 7 Baby steps.

 

What’s the hardest part of keeping track of a budget? Do you use another system? I’d love to know! Drop me a comment below.

 

 

Spread the Love. Share and Enjoy!

4 Comments to HOW TO CREATE A BUDGET AND STICK WITH IT

  1. Cathy says:

    In my early career, the hardest part to keep track of my budget was the distraction of shopping sales. There’s this temptation to spend at the end of the month and if you don’t do it, you would feel guilty.

    Then someone actually sat and talked to me about financial planning and it hit me that I am way behind in savings, especially for my retirement. That’s when I started doing auto-deduction from my savings, using a journal to keep track and now, I have a budget app installed on my phone so I get to see the in-outs of my cash monthly.

    Learning to create a budget is as important as buying an insurance. You want to start early so that you make the most out of your time.

    • Kayla says:

      Cathy,

      I couldn’t agree with you more! My husband and I are some of the only people we know who save for retirement at our ages. (We’re not spring chickens, but we’re younger than most who begin a retirement fund.) We follow the Dave Ramsey program – which I’m in the process of creating more posts based on his methods because saving is so important.

      What budget app do you use? I’d be interested in seeing how it works. Journaling about your savings seems like an awesome idea too! That’s one I’ll have to remember.

      I’m so glad things are working out and that there are other ‘budgeters’ out there because it is so important.

      Thanks for your comment and words of wisdom.

      ~Kayla

  2. B. A. Scott says:

    Hi! Thanks so much for this very informative article not only on budgeting, but on the everydollar program.

    I have never hear of everydollar until now and you make it so easy to set up. I’ve always budgeted on paper and it got to the point that I was staring to lose track and papers. This is a fantastic program!

    When it comes to budgeting, do you break down your budgets daily, weekly, monthly, yearly or a combination?

    • Kayla says:

      Thanks for your kind words! 

      I currently break down my budget monthly – which works for our household because our income doesn’t fluctuate very much month to month, so it’s easy to plan!

      EveryDollar also lets you copy the previous month’s budget – which is great for us since we use primarily the same figures month to month and we don’t have to redo it monthly. We have been using this for system for almost 5 years and like you, we started doing this on paper. We’ve tweaked it over the years and when finances change so does our budget. 

      Hope that helps! Good luck and if you sign up for EveryDollar let me know how you like it! 

Leave a Reply

Your email address will not be published. Required fields are marked *