How To Make A Personal Budget

by Susanne Myers - Date: 2007-02-01 - Word Count: 302 Share This!

There are many types of budgets that people use in their daily life. For instance, there are budgets to run a household, for transportation costs, business budgets, etc. One of the most important budgets that you can employ is a personal budget. A personal budget is a way to manage and control your individual expenses over the course of a day, week, month or year. Here are some tips on making a personal budget.

Most individuals have specific expenses that they must pay. In many cases, these expenses can be a major chunk of a family's total income. For instance, in a family situation, one parent can have huge transportation or business costs that must be paid each and every month. In this case, budgeting money for these expenses in advance or creating a budget can help manage and control costs before they get out of hand.

For personal budgets, you first need to figure out your individual expenses. Individual expenses can be transportation costs, costs for lunch when at work, dry cleaning costs, costs associated with supplies or books, etc. Once you know what you normally spend your money on and how much you usually spend weekly, monthly or yearly, you can balance it against your other important expenses and the income that you take in.

Many people realize that they are more apt to spend their money when it isn't allocated for a specific purpose. For instance, giving you or your spouse an allowance of $200 per week, will almost guarantee that all of that money will be freely spent. By figuring out your personal expenses and allocating them to specific purposes, you can easily make a personal budget that gives you enough money to pay for your mandatory purchases and allows you to save the rest for future or more important purchases.

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