Budget
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Building
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Budget • Building •
How to Build a Budget
A budget is a plan to map out how you will spend your money within a given period of time.
The first step to creating a budget is to evaluate your income (money you earn) within a given time period. Spend a week or so taking stock of your spending habits. Try and write down every purchase you make - really, all of it. Becoming aware of how much money comes in and out of your life will help you build the most effective budget.
At the beginning of each month (or a period of time), try to make a plan for how you will spend your money. This could look a lot of different ways! Some examples are to set limits on:
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This number will look different for everyone! You should determine this this based on the amount of income you know you will have available to spend. Remember, you should not spend your entire income in one month - allot a certain amount!
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For example, $100 dollars on transportation, $50 dollars on leisure
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For example: two coffees a week, one restaurant a week
As you progress through the month, continue to try and keep track of how much you are spending each day. Writing it down helps!
At the end of the month, evaluate your spending, and adjust your budget for the next one.
If you need some help getting started, use this worksheet!
Monthly vs weekly budgets will look a little different from each other! If you are building a monthly budget, make sure to take once-a-month expenditures (subscriptions, rent, etc) into account.