How to Master the Art of Keeping a Budget

Having sound Personal Finance Budgeting has many benefits. Budgeting properly will help you plan for and reach your financial goals and dreams as well as eliminate all the emotion of managing your finances.

Financial budgeting is a necessary administrative task that if done well can help keep away debt anxiety, overwhelm as let you know exactly where you are so you know what you need to do to make your balance sheet look more positive.

Understanding how to budget your personal finances successfully is an essential and important tool to removing financial stress then.

Budgeting to tips to help you reach your goals.


  1. Image titled Master the Art of Keeping a Budget Step 1
    Round up every financial statement you have. This includes bank statements, investment accounts, recent utility bills and any information regarding a source of income or expense and record all of your avenues of income.
  2. Image titled Master the Art of Keeping a Budget Step 2
    Write down a list of all the expected expenses you plan on incurring over the course of a month. This includes a mortgage payment, car payments, auto insurance, groceries, utilities, entertainment, dry cleaning, auto insurance, retirement or college savings and everything you spend money on.
  3. Image titled Master the Art of Keeping a Budget Step 3
    Break expenses into two categories:
    • Fixed expenses are those that stay relatively the same each month and are required parts of your way of living. They included expenses such as your mortgage or rent, car payments, cable and/or internet service, trash pickup, credit card payments and so on.
    • Variable expenses are the type that will change from month to month and include items such as groceries, gasoline, entertainment, eating out and gifts to name a few.
  4. Image titled Master the Art of Keeping a Budget Step 4
    Total your monthly income and monthly expenses. If your end result shows more income than expenses you are off to a good start. This means you can prioritize this excess to areas of your budget such as retirement savings or paying more on credit cards to eliminate that debt faster. Also, keep your budget alive my making constant adjustments as your situation changes.
  5. Image titled Master the Art of Keeping a Budget Step 5
    Review your budget monthly. It is important to review your budget on a regular basis to make sure you are staying on track. After the first month take a minute to sit down and compare the actual expenses versus what you had created in the budget. This will show you where you did well and where you may need to improve.


  • Of course if you use personal finance software you will find this task as simple as entering in the figure into a pre made spreadsheet with all the categories listed for you. This eliminates thinking on your behalf and will save you heaps of time.
  • Remember a stable financial future starts with good personal finance budgeting. If you are like most people who hate the thought of being trapped within a budget get yourself a good financial software program that will make the exercise more enjoyable.
  • Using software, especially for someone who doesn’t have much knowledge about intricacies of accounting and finance, will be beneficial for you in the following ways:
    • Speed: All you have to do is to enter the data about your income and expenditure and it will sort out your expenses and create plans for your future personal finance. Good software will even calculate your taxes.
    • Bill payments: Some programs are integrated with the internet and your bank so that it will pay your bills automatically. This is the best way to pay your bills on time and avoid late fees or discontinuation of services.

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Categories: Budgeting