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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.

• 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

• 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.

• 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

• 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

• 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

• 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

• 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

 

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