How do you even begin to create a budget? Walk yourself through 4 simple steps:
- Recon. Take stock of your situation. Tally up all the funds coming in and all the spending going out for a month.
- Strategize. Determine which spends are necessary and which are not. Do you see ways to make more funds available for the things you need and want most?
- Deploy. With a new budget in mind, make adjustments to bring it to life. Monitor your expenses and track your progress.
- Analyze. Compare actual spending to your plan. Did you stay on track? If not, why not? Tweak the plan and your behavior until you find a workable balance.