If you want to save more, spend less and reduce debt, it is important to have a budget. A budget provides a clear picture of how much money you are spending for bills, groceries, gas, childcare and other expenses. It helps you to plan, so you have more money coming in than going out. Here are three steps to budgeting.
If you want to be in control of your money, it is critical to know where your money goes. Track your spending for one to two months, with a spending diary. Download our Daily Spending Worksheet.
Do you have more coming in than going out? If not, look for ways to cut spending. Our Reducing Expenses page offers helpful tips. If necessary consider ways to increase income – even if temporarily – to pay off debt.