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Smart ways to budget

Updated on March 13, 2012

Are you the type to budget on a weekly, monthly or even a daily basis? Do you tend to balance your check book when you have a chance too? I know that there will be many people who would say yes and some who would say no but I think we all tend to budget even though we may not notice it at times.

There are several ways to budget. I will tell you about three ways to budget that I have found easy to use especially when you are trying to see how much money you can save. The first way that can help is by using the envelope system. I am sure you may have heard of this before but the way to do it is by just listing your expenses you will use cash for and you get that many envelopes and write that expense down and you collect the money. For example we all need groceries so just save the amount little by little and when it is time to go shopping that is how much you have to spend. This is a good idea for the most part but if you pay bills online then those expenses are in another category of their own.

Another way to budget is by writing all your bills and expenses on a certain notebook that you may have set aside for your finances. Make a list of all your expenses, this is including your bills, groceries and anything else you may spend money on. I like to do this for the most part it has been very effective for me. I do it on a month by month basis. I write down the bills and their due dates. In another column I write down the amount that I will pay or have to pay for that certain expense. I then write down each week, for example, March 1-March 9 and I look to see which bills are due within that week and write them down within that week. When I pay that bill during that certain week I cross it out and I calculate how much I have spent during that week. This has worked for me lately since I have been keeping track of my expenses. Some of you may say it is alot to do but when u think about it, it is a good way to see how much you spend each week compared to not knowing how much you spend.

This third way may not be a way to budge all the time but I find that balancing my check book is another great way to budget. I keep track of when I use my debit card or when I have to take out cash through the ATM. I sit down at the table with a calculator and a pencil and start to write down what I have withdrawn and have deposited. Part of this process is making sure I look at my bank account to make sure that the numbers I am getting matches the amount on the bank statement. This to me is also a good way to budget my money because I can actually see what I have spent and what is available for me to spend.

These three ways have been affective for me for the most part. I am sure that you have ways to budget your money because everyone does in their own way. What are the ways that you budget? Is it the easiest way for you to budget?

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    • Dancilla profile image
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      Priscilla 5 years ago from El Paso

      Thanks

    • SoManyPaths profile image

      SoManyPaths 5 years ago from West Coast USA

      To stay out of huge debt you must be responsible in the way you spend your money. Good advice.