Personal budget planning starts with making a list of what your income is every month, and what you spend you money on every month. To make a personal budget you will need a piece of paper, or a computer.
If you are not sure whether budgeting can help you, and would like you know more about other options available to you, you can ask our trustees for a Free Case Evaluation.
To make a personal budget, first write down everything you spend money on each month. Most people remember their rent payment, but often forget the newspaper they buy on their way to work each morning.
We recommend that you carry a small notepad with you every day, and write down everything you spend money on, including newspapers, lunch, magazines, and your morning coffee. It will help you make your budget as accurate as possible and your personal budget planning more effective.
By writing down everything you spend money on, you will have a complete list of all of your expenses, which will make it easier to create your budget.
To see how a personal budget look like, download a sample budget format (requires Excel 4.0 or higher).
There are many books you can buy on personal budget planning, but at Hoyes Michalos & Associates Inc., we recommend that you keep it simple: To make a personal budget that you will actually use, at the top of the page write down what you bring home each month. Then list everything you spend money on.
Now that you are familiar with basics on personal budget planning and know how to make a personal budget, we recommend you to create one for yourself and then do some personal budget analysis.