{"id":52948,"date":"2024-03-26T04:15:00","date_gmt":"2024-03-26T11:15:00","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=52948"},"modified":"2024-02-18T09:38:24","modified_gmt":"2024-02-18T17:38:24","slug":"10-tips-for-making-your-first-budget-3","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id52948-10-tips-for-making-your-first-budget-3.html","title":{"rendered":"10 Tips for Making Your First Budget"},"content":{"rendered":"

\"making<\/a>Landing your first real job and bringing in a steady paycheck each month is an exciting time. However, if you’re like most people, that’s shortly followed by a myriad of expenses. It’s difficult to keep track of all your bills and expenses — and if you over-spend, you could have trouble paying back that student loan or saving for emergencies. The best way to handle your money is by making a reasonable budget. With that in mind, here are 10 tips that are guaranteed to help you make your first budget:<\/p>\n

Figure Out Your Goals<\/b><\/p>\n

The first step to creating a budget is figuring out why you want one in the first place. It’s important to define your goals because that can shape exactly where your money goes. Do you want to save more? Get out of debt? Break the paycheck-to-paycheck cycle? These goals will serve as your motivation to stick to your budget.<\/p>\n

Analyze Your Spending Habits<\/b><\/p>\n

You can’t make a budget without knowing how much you’re spending every month. Experts recommend tracking your spending for at least 30 days to truly understand where your money is going. You can try entering your expenses in a spreadsheet<\/a> or notebook, or use an app such as Mint or PocketGuard that tracks your spending for you. Credit card and bank statements can also help you figure out your spending.<\/p>\n

Find a Way to Hold Yourself Accountable<\/b><\/p>\n

Creating a budget is the easy part — sticking to it is more difficult. You need to determine how you’ll hold yourself accountable from the very beginning. For example, try putting your bills on autopay, including transfers to your retirement and savings account. Another helpful method is the envelope system, where you put cash inside an envelope for each of your spending categories; when the cash is gone, you know you’ve reached your monthly spending limit.<\/p>\n

Make Savings an Expense<\/b><\/p>\n

If saving money is your big goal for creating a budget, then you need to make savings one of your expenses. A good rule of thumb<\/a> is to save 10% of your salary. Try putting that 10% directly in your savings if you use direct deposit — that way you’re not tempted to spend it. Try to save enough for three to six months of sudden unemployment.<\/p>\n

Divvy Up Necessary and Discretionary Expenses<\/b><\/p>\n

Your expenses include both necessary and discretionary bills. Your necessary expenses include:<\/p>\n