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	Budgeting Checklist

	By Ramona Creel

Feel free to use this tip sheet / checklist as you tackle your own ""do-it-yourself"" organizing projects. If you would like to REPRINT or DISTRIBUTE this information, please click here for reprinting instructions.

AN IDEA OF YOUR FINANCIAL GOALS

know what you hope to accomplish before beginning your budget
pay off debts? reduce your expenses? save for retirement?
list your financial goals for 6 months, 1 year, 5 years, 10+ years
don't worry about feasibility -- where there's a will, there's a way

CREATE THE SHEET

start with a sheet of legal paper (or spreadsheet program)
create 12 columns, one for each month of the year
label each row for a different living expense
think in terms of categories that you can divide in to subcategories
ex: "automobile" includes gas, repairs, insurance, registration, etc.

EXPENSE TRACKING

create a list of static expenses (cost the same every month)
rent, mortgage, car lease, student loan, etc.
then evaluate variable expenses (fluctuate every month)
groceries, utilities, entertainment, clothing, etc.
go through last year's bills to find large and unexpected bills
car repairs, medical bills, fines, etc.
tally each irregular expense and divide the total by 12
gives a clearer idea of how your costs spread over a year's time

FINDING THE MONEY LEAKS

avoid impulsive spending (proactive rather than reactive behaviors)
make conscious decisions about how to invest your resources
clear up financial disorganization (interest charges, late fees, etc.)
pay attention to how and where we spend money
track every single penny you spend for a month
look at each expense and ask if you get a tangible benefit from it
ask if it is worth the time spent earning the money to pay for it

HANDLING YOUR DEBTS

list out all of the balances you owe
make note of the interest rate charged by each
pay the minimum on all debts except the highest interest rate
pay as much as you can on the highest interest rate
when that card is paid, apply money to the next-highest rate
keep working your way down the ladder until all are paid off

TALLY UP YOUR INCOME

you can't create a budget until you know what you earn
calculate your income after taxes and Social Security
after other withholding (health insurance, 401K, etc.)
include only regular sources of income

WHAT IS THE VERDICT?

compare income to expenses to see where you stand
if you are in the black, you can begin committing some to savings
no matter how large or small an amount, savings is a priority
build your savings and investments into your budget like a bill
pay yourself first before paying anyone else
at least 10% of your income going into savings
if you are in the red, your goal is reducing your spending
decide which expenses are necessary and which waste money
start first with incidental expenses (sodas, snacks, magazines)
also consider larger expenses (housing, car, vacations)
<30% of income each for housing, household, and other bills
ask if your money isn't better spent elsewhere
ask if you would get more benefit from other spending patterns

Copyright 2000-2009 Ramona Creel -- you are welcome to reprint any article, but you MUST include this resource box and a link to www.RamonaCreel.com.

Ramona Creel is Professional Organizer, NAPO Golden Circle Member, and the original founder of OnlineOrganizing. A former Social Worker, she has always enjoyed helping people find the resources and solutions they need to improve their lives. Ramona now travels the country as a full-time RVer, sharing her story of simplicity with everyone she meets. She leads by example -- having worked for more than 10 years as a Professional Organizer, and having radically downsized and simplified her own life as a full-time RVer. Ramona now considers herself a "Renaissance Woman" -- bringing all of her passions together into one satisfying career. As a "Virtual Organizer", she can create a customized organizing plan for your home or office. As a "Simplicity and Accountability Coach ", Ramona provides a proven program for making every area of your life a little bit easier -- perfect for those who want to make the time and space to focus on their true priorities. As a Professional Photographer, Ramona captures powerful images of places and people as she travels. And as a freelance writer and blogger, she shares organizing techniques, travel tips, and social commentary with others. You can see all these sides of Ramona -- read her articles, browse through her photographs, and even hire her to help get your life in order -- at www.RamonaCreel.com. You can also follow her on Twitter, check out her Facebook profile, and subscribe to her blog feeds.

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