Create an Easy Home Budget

There are three types of people: those who budget every single dollar, those who have a rough idea of their spending, and those who don’t budget or track anything at all. Each method fits a different personality, and often those in their particular budgeting mindset aren’t very happy with where they are. The extreme budgeters wish to lighten up a little; the non-budgeters wish to track their spending a little better. If you fall into the second category, I have good news. Your payroll services specialist in Billings, Montana will show you how to create a simple budget in just 4 easy steps.

Gather Your Data

Before you can get started with your budget, you need to know where your money is going. Now this can be as in-depth or as loose as you want it to be, but you need to make sure to include some major expenditures. Here are some places where you likely spend to get you started thinking:

• Mortgage or Rent
• Utilities – Phone, gas, electric, water
• Food
• Oil and gas for the car
• Insurance(s)
• Entertainment – eating out, movies, concerts
• Savings/Investment

Your spending may look different, but you need to look back at the last month or two and see where your money goes. If most of your purchases are in cash, and you don’t have receipts, then you will have to fill in these categories as you complete the next step.

Write Down Expenses

For the next couple of months, you need to track all of your expenses. This means every single time you buy something, write down what it was and which category it falls into (the categories that you made in step one). This will get you a precise look at where your money is actually going.

The easiest way to do this is to simply keep your receipts. If you don’t get a receipt, like after getting gas, snap a picture of the pump so you know how much you spent. Then, each evening, spend 10 minutes recording where all of the money went.

Tweak the Budget as Necessary

For many people sticking to a budget is hard to do. And that is because they tend to overspend on one area of their budget. You are spending a certain amount each month, but many people need to tweak their budget to get things like savings boosted up, and cut back in other places.

One of the easiest ways to save is to negotiate certain expenses. For instance, call your internet provider and tell them you aren’t happy with the service and you will likely switch. Tell them if you can have the introductory price for the next 12 months you will stick around. This will save you about 30% off your internet service.

Earn More on the Side

If your budget is all out of whack, you have cut back as far as you can, and you still seem to be spending more than you earn, the only other option is to earn more money. That can be done easily by picking up a side job, or starting your own side hustle: you may remember reading about a side business.

Practical Taxes

When your side hustle takes off it could replace the income from your regular job. When that happens, come see us at At Practical Taxes. We are a full service accounting firm in Billings, MT; we offer payroll services, business consultation, tax preparation, and a host of other services to make your life easier. Call us to learn more 406-894-2050.