If you have limited funds and need to know exactly how you are spending your money, it is a good idea to create a monthly budget. It’s easy to do and will give you an accurate account of what you are spending and what is left over at the end of the month.

First you need to have an idea of how much take home income you have every month. Most people’s incomes will fluctuate over time, but if you are on a fixed income it’s easier to budget because you always know how much you will have. Take home income is the amount of funds left over after taxes.

Then create a list of all your expenses; this includes housing, food, utilities, insurance, gas, car payments, cable and phone bills, internet, entertainment and any other bills you might have. Then list your savings you put away each month and any extras. Calculate what each expense is for each of these and list those as well.

This will give you an idea of how much you need to have for the month for bills and food and what you will be left with once it’s all paid off. If you find you are short at the end of the month, you might need to cut back on some things like going out for coffee or dinner; or maybe cancelling your cable.

It’s not difficult to prepare a budget; the hard part is sticking to it. This takes time to train yourself not to stop for a take out dinner on your way home, or go for a cup of coffee but have it at home instead. You will find though if you take little shortcuts like these, you can put more towards your savings and will end up with more money at the end of the month.