GETTING BACK ON TRACK
In order to set up your budget, you will need all of your receipts from the month prior as well as all the statements from the prior months bills. If you don't save receipts, now is the time to start ~ then set up your budget for next month.
Organize your receipts into categories ~ grocery, dining out, gasoline, medical, personal, ATM receipts and finally miscellaneous. Total receipts for each category. Then total the all categories and label as personal monthly expenses. Set this info aside for now.
Organize your bill statements. First, put them in order by "due date". If you get paid weekly then take a look at last months calendar and list all four dates that your payday fell on. (Example: 7th, 14th, 21st, 28th). Now look at the due dates on your monthly statements. If your payment is due between the 1st-7th, put them in the 28th (#4) paycheck pile (make this your first pile). If your payment is due between the 8th-14th, put them in the 7th (#1) paycheck pile (your second pile). If your payment is due between the 15th-21st, put them in the 14th (#2) paycheck pile (your third pile) and finally, if your payment is due between the 22nd and the end of the month, put them in the 21st (#3) paycheck pile (your forth and final pile).
Make your payment schedule. Get a legal pad and label it across the top with the month (next month). You are going to take your first pile and start listing each bill in order of due date. List each item like this:
Company Name / Amount / Due Date / Paycheck # / Paid On
Once you have listed all items from your first pile, leave at least four spaces and then draw a line on your pad, dividing the first pile list from the second list you are about to make. Continue making this list and division line until all four piles and statements are listed and accounted for. Leave at least four spaces after every division for, personal expenses, savings deposits and any expenses you have no statements or receipts for that you have forgotten. Also, add in the due date for your rent payment or mortgage payment.
Each paycheck is now accounted for in each quarter according to bills due. Now add in monthly receipt total expenses. Keep track of your spending habits by totaling your receipts each month. This will help you adjust your budget in the future and keep you aware of where your money goes.
Divide that total from your personal expenses by the number of paychecks you receive in a month. For this example you would divide that total by four. On one of the blank lines list your personal monthly expenses:
Personal Expenses / Amount per week allotted
It's also very important to pay yourself. Putting savings into your budget will help you in case you run into any unforeseen emergencies and help you get used to a savings habit. Once your savings gets built up, you can have a financial adviser explain options to get your money to work for you. You can either notate this in your budget or you can have your employer automatically deposit money from your paycheck directly into a separate savings account. If you decide to put it into your budget then label it like this:
Savings / Amount per week allotted (then make sure you pay your savings account)
Your budget may look something like this:
Company Name / Amount / Due Date / Paycheck # / Paid On
Electric / $200 / 8th / #1 / Paid On
Water / $80 / 10th / #1 / Paid On
Cable / $170 / 11th / #1 / Paid On
Car Payment / $280 / 13th / #1 / Paid On
Personal Expenses / $150
Savings / $50
Personal Loan / $250 / 15th / #2 / Paid On
Visa / $80 / 16th / #2 / Paid On
MasterCard / $170 / 17th / #2 / Paid On
Store Credit / $80 / 18th / #2 / Paid On
Personal Expenses / $150
Savings / $50
Rent / $700 (of $1000) / 1st / #3 / Paid On
Personal Expenses / $150
Savings / $50
Rent / $300 (of $1000) / 1st / #4 / Paid On
Phone / $80 / 2nd / #4 / Paid On
Car Insurance / $170 / 7th / #4 / Paid On
Wireless / $180 / 7th / #4 / Paid On
Personal Expenses / $150
Savings / $50
Keep in mind that the #4 paycheck from last month is first the first week of this month's bill. According to this sample budget, the total take home pay for each week is as follows:
Paycheck #1(8th-14th)must amount to $930. Paycheck #2 (15th-21st)must amount to $780. Paycheck #3 must amount to $900 take home pay which covers part of rent due on 1st. Finally, paycheck #4 must amount to $930 take home pay which covers the remainder in rent and bills due the week of the 1st-7th.
Once you think you have a sound budget, enter all of the information and details into a spreadsheet program ~ you will be amazed at how much progress you will make just by having a plan. Good Luck ~ you are in control.