Loanio

A personal budget is simply a spending plan. Before you work on personal budget planning you need to have a good idea of where and how your money is being spent. It can be a tedious process, but it can also be a true eye opener if you are not already well aware of how and where you are spending your income. Many people tend to spend their money with no real idea of where it is going. The first step to making a budget that you can live with is to come up with an accurate and easy to follow system for accounting for your expenses.

Track your spending! One simple and inexpensive method for tracking your spending is to purchase a small notebook from a grocery store. Keep this notebook with you at all times, and every time you spend money, write it down. You need to be able to keep track of ATM withdrawals, debit transactions and credit card expenses. You may also consider using a simple spreadsheet software program or a paper system in order to record and track your expenses from day to day.

Budgeting doesn't mean hoarding your pennies.

Create a budget! Having a budget does not mean that you have to squirrel away every penny, doing without important things that you need in your life. What it does mean however is that you are making sure that your most basic needs are being taken care of first and foremost, and that you are keeping yourself aware of how much money you have for splurging purposes. After you track your expenses, the next step is personal budget planning. Here are some things that will better simplify the personal budget planning process.

Income –

Make sure to include all sources of income and revenue, including gross income paychecks, child support, alimony, bonus checks, government checks, investments, retirement and personal business income as well.

Recurring Expenses –

Here are some of the usual monthly recurring expenses that you may find yourself dealing with. Along with your record of spending, this list will help to make sure that you are remembering everything that you need to account for: Food, home insurance, childcare, health insurance, gas, automobile insurance, electric, cell phone, home phone, internet access, cable, satellite television, water and sewer, prescriptions, dining out, garbage service, school lunches, entertainment, work lunches and charitable giving as well. You are also going to want to include monthly savings account goals, dining out, movies and other activities that you will spend money on regularly.

Variable Expenses –

This is a list of expenses that come regularly but not on a monthly basis. Some examples are spending for holidays like Christmas, Thanks giving, birthdays, personal care, income and property taxes, household repairs, prescriptions, doctor visits, clothing, shoes, school tuition, book costs, school supplies, school expenses, home equity, mortgage expenses and automobile expenses.

Unsecured Debts –

Here you should make sure to track any credit card debt, loans, school loans and other types of unsecured debt that needs to be paid off.

In order to put together all of these personal budget planning elements, you need to track your income and expenses on a month by month basis. Take the net amount you earn from each income source and figure out how much is earned in a year following this plan, then divide by twelve for a monthly average. Do the same with your expenses to come up with an average monthly amount. This is the best way to budget. It may not be exact, but it does allow you to more effectively and efficiently plan both for incomes and expenditures.

Photo Credits: 1

Originally posted 2008-12-03 05:02:26. Republished by Blog Post Promoter

• Personal Budget Planning /caption] Personal budget planning is an important part of keeping a handle on your finances. Because there is so much turmoil in today's economy, maintaining a healthy personal budget is more vital than ever. Crafting a personal budget begins with determining how money comes in, and how money goes out,......
• Defining Your Budget and Crafting Your Financial Future A budget or spending plan is a specific money management tool that is designed to put you in control of your spending, keeping you out of credit trouble and other financial trouble. Your budget is vital because it is your personal plan for spending the income that you have, making......
• Great Budgeting Examples /caption] When you are looking at ways to implement a family or individual budget into your household, one of the most proactive steps that you can take is to look at great budgeting examples from other sources. Because everyone has unique financial and budgetary needs, there is no real one......
• How Do I Plan For Retirement Every working man and woman is entitled to a retirement that is secure and comfortable. Saving and planning for retirement is not necessarily an easy process however because we are living longer and healthier lives in general, which means we need more money to survive retirement than ever before. If......
• Finding a Legitimate High Yield Investment Most people hear the words High Yield Investment Program, or the acronym HYIP, and many of them quiver. This is not completely unnatural, because high yield investments only come with high risks, and most HYIP opportunities are not even legitimate to begin with. There are simply too many people out......

• How to create a workable budget The idea of creating a budget sometimes makes people throw up their hands in frustration, but it's not as hard as it may seem at first. Generally it's hardest when you have no idea of what your expenses might realistically be -- such as when you move out on your......
• Use an Income and Expense Budget To Deal With Your Financial Problems When you first realize you are having financial difficulties (or even better, before you realize there are financial difficulties to come!), you should set up an income and expense budget to deal with your financial problems. There are three main reasons for setting up a budget: 1. Learn how......
• 5 Reasons To Dump Your Strict Budget You probably weren't expecting to hear Frugal Dad advocating getting rid of a budget. Well, I'm not, entirely. What I am advocating is that you take a look at your monthly budget with a critical eye to determine if your budgeting process is negatively effecting your life. Yes, budgets can......
• The Best Money Saving Ideas of All Time. So, many people think they know the best way to save money, whether it is by putting aside a few dollars a week under the mattress, staying out of credit card debt, investing in the stock market, owning a home for the tax write off, etc etc. In the search......
• Budgeting for Those Bereft in Budget Sense: Have an income and wonder how it disappears?  If you have a problem with spending all your income, it is a problem, but can help you better relate to the budget realm. The purpose of a budget is to spend your income, but with designated purpose. A budget is essentially......