![]() ![]() So, if your income turns out to be more than you planned, now’s the time to adjust. Remember, you planned low when you listed your income. This step is super important if you have an irregular income. If you make money through a side hustle or you sell something, log that in too! When your regular paycheck comes in, enter that amount in the income part of your budget. Now that you’ve set up your budget, you’ve got to keep up with it. That way, your money’s working as hard as you do. This is called zero-based budgeting, and as we said before, it’s all about giving every single dollar you make a job to do. If you’ve got a negative number, lower your planned totals or cut extras until you get zero. If you’ve got money left over, that’s awesome! Put it toward your current Baby Step (the proven, guided path to saving, paying off debt, and building wealth). Extras (entertainment, restaurants, etc.)ģ.Other essentials (insurance, debt, childcare, etc.).Four Walls (food, utilities, shelter/housing and transportation).Time to plan for everything you’re paying for this month. List the lowest amount as this month’s planned income. Got an irregular income? Just look back at what you’ve made the last few months. This is how much money you have to work with this month! ![]() (That means your regular paychecks and any extras like that side hustle!) Add it all up. List out all the money you plan on making this month. Okay, here’s how you go about setting up a budget: So, it actually gives you permission to spend!Īlso, if you’re worried about how much work is involved in budgeting, check out EveryDollar! This free app helps you make (and stick to) your budget with ease. It’s a guide you set up to make sure your money does what you tell it to do. Has anyone ever told you a budget is too limiting? The truth is, a budget doesn’t control you-you control it. When you budget, you give every dollar that comes in during the month a job to do, whether that’s spending, saving or giving.Īnd listen, budgets get a bad rap. What’s a budget? It’s your monthly money plan. You won’t be able to track expenses without one. And your teeth-and budget-will thank you. And just like other important habits (you know, like flossing), it takes some work and repetition to go from trying to remember to do it to doing it naturally. Tracking expenses (aka tracking transactions) isn’t hard-it’s a habit. So, let’s talk about how to track expenses in four simple steps. This is the secret to taking your budget from good intentions to awesome outcomes. And the way you do that is by tracking expenses. The way you do that is by making a budget and sticking to it. If you want to win with money, you’ve got to change your actions with money. ![]()
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