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Amber’s Home and Office Organizing Blog index

Budgets Made Simple

I think many people over complicate living on a budget and putting together a budget. Before organizing, I was a bookkeeper and to this day I still love numbers, math, and budgets. They just make sense and I don’t think I could ever live without a budget. It helps focus my husband and I on long term goals. So if you’re interested in setting up just a simple straightforward budget here’s a simple way to look at things:

1. Look at your finances from a monthly perspective.
2. Gather all your income numbers- paycheck amounts, child support, tips, etc. Any income you can think of. So total the numbers and write down your total projected regular expected income on a month to month basis.
3. Next, gather all your expense numbers- now don’t go crazy searching for every atm, cash, or grocery receipts. For now just go through all the bills of the the regular household expenses- insurance, mortgage, rent, electricity, etc. Total up that number
4. Now make a list of things you normally spend cash on- eating out, cd’s, Starbucks, parking, gas, etc. Again, don’t go looking for receipts- just list what you often spend cash on or use your debit card.
5. Finally add up your consumer debt from credit card balances, etc.
6. We’re all set- do this simple equation...  total expected income(#2) minus total expected expenses(#3). The result or balance is what you can use to pay off debt (#5) and for gas, groceries, pizza, Starbucks, etc (#4).
7. I highly recommend that you actually use cash for #4, so when the cash is used up, you stop spending for the month. Debit cards are too easy to keep swiping as well as credit cards so try cash for month.  

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