Budgets: How I Created My Personal Budget

My Personal Budget

In this video I take you through how I created my personal budget and:

Building the Budget

– I show you how I created my budget and the specific categories I’ve allocated my money into.
– I also take you through my 3 month plan to eliminate around $5000 dollars in debt as part of my personal budget.
– I talk about the importance of having a personal budget and understanding your finances. An emergency fund is another topic I touch upon and truly an important one that should be included in every personal budget, whether your single, married, or otherwise.

I actually use excel at this point to create, monitor, and maintain my budget, but this was the easiest way for me to illustrate how I manage my money for the month of October. Having a personal budget is extremely important. It is literally the difference between being able to pay bills and not knowing where you can afford to eat. There isn’t a single reason why a person shouldn’t be fully aware of their financial position. The easiest way to begin this process is by creating two columns. One column for monthly reoccurring bills and their amounts. Then the other column is for forms of income received on a monthly basis and their amounts. Add up all the numbers for each column under each column. Subtract the debt column from the income column. If you have a negative number that means you pay out more than you make. If you have a positive number you make more than you spend. Voila you have a budget. Now there is a bit more to having a good budget than that, but that’s essentially your starting point. I discuss budgets in a bit more detail in my later videos. You can see one of them by clicking here.