Pen and Paper Method

The pen and paper method lets get started!!!!

3 steps to creating your budget:-

The steps you need to follow with this method may seem tedious but they are vital if you wish to create a budget that is both workable and accurate.

Step 1.

Decide which type of budget will suit your needs best.

• It is up to you whether you decide to set it up as a weekly, fortnightly or monthly budget. Once you have made your decision, you will have to adjust your income amounts to reflect this in the budget you have chosen.
• If you receive most of your income on a monthly basis it may be easier to set up a monthly budget.
• If you receive other income on a weekly/fortnightly basis, you will have to calculate what it would be on a monthly basis in order for the budget to work correctly.

Step 2

Divide the page into two, on the left side of the page write down your income from all sources. Remember to amend any amounts that are paid at different periods.

• Eg:

You are creating a monthly budget and one of your sources of income is paid weekly, the equation would be:

Weekly amount x 52 / 12 the result is your monthly income from that source.

Ok now we have covered the easy parts, we are going to move on to the tedious section. Do not despair; it is also the exciting part! Soon you will discover exactly where your hard earned money is going!

In time you will be able to see if or where you may be overspending, where you could possibly cut back and whether or not it is possible to maybe put money aside for savings/unexpected expenses/holidays/gifts……..whatever.

step 3 to follow shortly....