Budgeting 101

Someone asked me to write a blog on personal finance, and until now, I have been avoiding it. Why you might ask? It is because it is such a touchy subject with a lot of people. So I am just going to start with basic budgeting, because I believe it’s a little portion of personal finance that everybody can benefit from.

Create a Budget – Budget’s are important, because they keep you on track with your money, and they keep you from making bad financial decisions. So this is what I would do:

1) Find out how much you make every two weeks. For example, one could make $140 a week. Obviously, I would hope this person is a student. That would be $280 a month.

2) Find out how many expenses you have every two weeks such as…

Gas $60

Food $30

Spending $20

Utility Bills $30

= $140

It is important not to go over your 2-week budget, and this will begin to teach you how to stay within your limits. I would also suggest that you pull out cash for each of these and refrain from using a credit card, because it is always easy to go over your budget when the money is not right in front of you. And remember, as you get older, your expenses will grow, but the same concept will stay.Β 

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