The Easiest Budget

From what I've found the easiest way to budget is actually a lot more simple than you would think.

Step 1: Take your monthly income and add it together.

Step 2: Find all expenses and add together

This would include utilities, cable, wifi, rent, phone bill, car payment, loans, etc. This does NOT include gas, groceries, etc., that will come later.

Step 3: Take your monthly income and subtract your expenses. The amount left over is how much you can choose to spend, save, or spoil.

If you are someone who gets paid biweekly, you can also choose to split your paychecks in order to help with organization.

For example, you get paid $1000 every other Friday (2 paychecks a month)

Your total expenses every month totals $800.

$800/2 paychecks a month = $400 expenses per paycheck

This means you have $600 ($1000-$400) for spending every two weeks, AKA every paycheck.

Optional: You can have your direct deposit split $600 into a spending account and $400 into a bills account every paycheck.

I think doing this is most beneficial because it allows for you to segment your money and visualize what CAN be used, versus what can NOT be used.

There are many different ways to budget and everyone understands money differently, but this is the easiest way I have found to organize my cash!