Budgeting For Dummies

By Tom Tessin

In today’s world, most of America is in debt. If you don’t want to be a part of this crowd, it’s important that you start to save your money as soon as possible to get out of that negative hole. If you’re already on a budget plan, that’s great. If not, it’s time that you jot down these helpful tips and start working on them.

Start by writing down everything

The first thing you should do when you start a successful budget is write down every single expense you have to pay each month. This ranges from your home mortgage to your xm radio account. Every single dollar will count toward this. When it comes to entertainment and food, make a good estimate. Most of the times it’s best to over-estimate, so that when you see how much you spend in a month, you’re not surprised.

How much do you make?

Once you write down every single expense you have made, write down how much you bring in each month. If your monthly income is random, make sure you just take a low average. This way you don’t over guess it and stay within your budget. Make sure that you also include how much you make on the side as well. If you have a side ebay business for example, include this as well. Every penny earned should be tallied.

Start your plan

When you finally get the dirty work out of the way, it’s time to make your spending plan. The first thing that you should pop in your head is that you should include savings in your budget. Without savings, you don’t have a complete budget. Make sure that you save at least 10% of your take home each month. This is usually a safe average that experts suggest.

Stop the impulse

We all are guilty of impulse buying. This needs to absolutely stop if you want to be set on a focused budget. Now, if you really want to, you can include a budget category that is listed as impulse. This way you will know how much you can spend on impulse buys such as fast food, those bath towels, or any other item you buy on the go. Remember, this is key and if you can follow this simple step, you can stretch your budget even further.


The most important part of your budget is to stay strong and focused. No one wants to create a budget and only stick to it for a few days and quit. This isn’t how you save money. Create your spreadsheet and post it around the house. Even throw in a spreadsheet in your purse or wallet. Every time you make a purchase, make a note of it. The easiest way to do this is to either use one credit card or save your receipts. If you use one credit card, simply save the receipt each month and note it next to your budget sheet. If you’re able to stay strong and focused, you’ll be on the budget road in no time.

About the Author: Tom Tessin runs and operates GOtalkmoney which focuses on savings with CD rates.