Once you have gathered information and made some cuts you should now have a picture of what your budget should be based on the expenses-income balance. Meaning of course that your income exceeds your expenses.
This balance is crucial in not creating more debt each month – which is the biggest reason people are in debt – at least it was mine.
In my Box widget you will find an active budget form where you can enter in your budget goals for the month (left column). On the right column you will need to enter what you actually spent each month on each category.
This is where WRITING EVERY EXPENSE down comes in handy.
Crash course in Excel: I suggest using excel to do this as it will be the easiest to sort and summarize (Daily Expense form in Box widget). Once you have every expense written down in the month you will need to categorize them. Once you do this you will sort by category and then go to “data–subtotal” here you will choose the following:
This will give you the amount you spent each month and give you an actual picture of what is going on in your finances.
Congratulations! Though it may seem you are far from mainting financial balance you have completed what most don’t do (but really should). The path you are on is mentally challenging but it is the correct one. Remember you are not alone and I (and fellow followers) would be happy to help with any challenges or support you may need.
Coming up: Family Budgeting: Don’t Lose your Cool