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How To Organize Your Budget

How do you start creating a budget?

First, you need to know your actual expenses! Write down all of your monthly expenses on a sheet, and organize them by date. Once you know your numbers then you can organize them by category.

How?

At Elite Empowerment Coaching I have my clients organize them into 3 categories.

What are they?

Fixed or Recurring Expenses

These happen every single month and have a due date attached.

These are expenses like your mortgage, utilities, cell phones, etc…

They usually are the same amount every month, but some may fluctuate slightly.

Day-to-Day Expenses

These happen every single month with no due date attached.

These are expenses like groceries, eating out, getting gas, etc…

These are usually small amounts, but because they happen so often they can add up real quick.

Non-Regular / Random Expenses

These don’t happen every month but when they happen, they happen BIG!

These are expenses like car repairs, vacations, clothes, etc…

These tend to cause the most stress and add the most debt.

By organizing your budget this way, you can see what your actual expenses are! This also helps you to know what you really have available to reach your goals.

While you can’t plan for 100% of everything life throws at you, if you create your budget this way, you can be prepared for most of it.

It’s important to not only know what these expenses are but also how they impact your budget. Each category happens differently and should be managed differently!

Need help creating your personal budget and learning how to manage each category? It’s as simple as booking a free Q&A call today!

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