Subtract your monthly expenses from your income. Determine how to use any leftover money (i.e. saving or investing). If there is no extra money or your are in the negative, review your budget to determine what expenses you can reduce or remove.
So how do you create a budget?
It may be the easiest to follow marriage advice yet as it really only takes three easy steps:
Determine amount of income coming in each month. If you and your spouse both work, include both incomes as well as any other sources of income.
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Figure out how much you spend each month on fixed, variable and discretionary expenses.
Fixed expenses mean those “same dollar every month costs” like rent/mortgage, car payments or insurance.
Variable expenses change from month to month, but are guaranteed to occur. This can include utilities, gifts and gas for your vehicles.
Discretionary expenses are optional expenses because we all need a few indulgences- things like going to the movies or out to eat. If you take all the fun out of your budget, it’s not likely you will stick to it!
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