How to Make a Budget
Budget Timeframe
First, decide the amount of time you want to budget for. Many people make a budget for a year. You could decide to budget for less time, like one month or six months.
List Income
Next, make a list of all the money you have coming in each month and add it up. You will multiply that amount by the number of months in your budget time (one month, six months, one year).
List Expenses and Spending
Then, make a list of all your regular bills that stay the same amount each month, like rent or car payment. Add to the list of bills you pay that are a different amount each month, like utilities. You might want to use an average amount for the bills that are different each month. Another expense you could list is how much money you usually spend on food. You could also list things like clothing, transportation, and personal care items. Last, List extras like eating out, entertainment, or video games.
Balancing Income and Expenses
Add up your income, then add up your spending. Subtract your spending from your income. The goal is to have some money left after you subtract your expenses.
Extra Money
When you have money left at the end of the month, you can decide what to do with it. You could spend some of it on extras, like entertainment or eating out. You could also put some away, or save it for something you want or need in the future.
Tools: More About Budgeting
Use these tools to learn more about budgeting to help you set your money goals.
Activity: Build Your Own Budget
Use this activity to practice making your own budget. You can print the activity or look at it online and write your answers on your own.