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The basics of personal budgeting must begin with determination. Without a firm decision to stay on track, it is impossible to control our monthly expenditures. But with a good plan and the resolve to stay committed, anyone can win at this financial game.

THE BASICS OF PERSONAL BUDGETING:

1. Determine all your income for the month. Not your gross monthly income, but the net you receive on your paycheck, or that is deposited directly into your bank account. Include income like child maintenance payments or alimony payments in your total.

2. Using a simple lined piece of paper or a fancy computer software budget program (there are free budget planners online, too) begin to list all your monthly expenses.

Here's an A-Z checklist that may help you in formulating your personal budget expense list:

a) Rent
b) Groceries
c) Heat, light, water, sewage (utilities)
d) Cable, home phone, cell phone
e) Transportation costs (bus passes, gas, etc.)
f) Car payment
g) Insurance (auto, home, life, medical)
h) Charitable donations
i) Clothing and shoes
j) Sundries (shampoo, toothpaste, etc.)
k) Personal care (hair cuts, manicures, etc.)
l) Pet care (food, vet visits, medicine)
m) Loan payments
n) Credit card minimum monthly payments
o) Child maintenance or alimony payments
p) 10% enforced savings accounts
q) Daycare or babysitting fees
r) Dining out
s) Entertainment (movies, video rentals)
t) Sports (club fees, equipment rentals)
u) Travel and vacation
v) Gifts and celebrations
w) Hobbies (books, craft supplies, etc.)
x) Education (fees, books, materials)
y) Computer expense (hardware, maintenance, software)
z) Emergency fund

Your own list may look similar to this one, but continue to customize your budget list until it represents your monthly spending habits accurately.

3. Now calculate your expenses. Personalbudgeting.com offers a quick and easy budget calculator that will assist you making the necessary calculations. (www.personalbudgeting.com/sam ple/sample.html)

Once you have subtracted your expenses from your income, you will have a much better picture of how much you can afford to spend every month.

After calculating your personal budget, if you find your income doesn't cover your expenses, then you must eliminate some of your budgeted items. Or move your funds around, earmarking higher amounts in one area, lower amounts in others.

Or maybe it's time to get a part-time job, if only temporarily.

4. It is imperative that you chart your ACTUAL expenses once you begin following your monthly budget plan. This way you can check back to your original plan and make any revisions in accordance with your real spending habits.

Remember, your initial personal budget was a guesstimate; as time goes on, you will get a very accurate picture of your monthly expenditures, but only if you write them down.

The goal in personal budgeting is to generate a surplus; to have money left over at the end of the month. These are the funds that you can assign to your savings account, a vacation account, or use to buy that big item you have been hoping for (the plasma screen TV, the new watch, or the new car).

Your lifestyle will ultimately determine your spending habits; but your spending habits shouldn't determine your lifestyle. Take control of your personal finances now with a personal budget plan, and you will never be restricted by an out-of-control debt load.

Learn more about this author, Sheree Zielke.
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