Budgeting is a healthy aspect of anyone’s financial health. It should be done periodically whether you are struggling financially or easily making ends meet in order to organize your priorities. The broad, and simple answer to budgeting is to identify your necessities, identify your “wants”, and then calculate how much you spend each month on these categories. Here are the steps to help you get started when first learning or attempting to complete a budget.

1. Print out 2-3 months of your bank statements. You may also need to access your cash app statements, uber eats statements, etc.

2. Have multiple colors of highlighters (4-5) if possible to help categorize and visualize your spending.

3. Categories may include but are not limited too:

Needs

Bills (Electric, Water, Rent, Car payment, Car Insurance, cell phone, etc.)

Food

Gas

Hygiene Products

Credit Card Payments

Wants

Shopping

Beauty supplies/Nail SalonEntertainment 

Eating out/DoorDash

Streaming Apps

1. Take a highlighter and then highlight all spending of a category in one color. For example, you may choose pink to highlight all of your shopping charges you find on your statements. You may use yellow to highlight all of your bills, and then blue for all of your eating out, etc.

2. Use the link below to open up a monthly budget tool, and input your findings:

Budget Tool

1. If you are patient, detailed, and honest with your findings, you will have a great idea of what you need to cut out or cut back on in order to live within your means. You can then set goals in order to save for emergencies or fun splurges on yourself and/or family.

2. Don’t forget the little things such as birthdays, holidays, and other mandatory events that will add to your budget planning.