How to establish and keep a budget.Many people think that sticking to a budget means they won’t be able to have the things they want. In fact, the opposite is true. A budget can help you preserve your lifestyle AND pay off debt while saving for the future. But if you sometimes have trouble making ends meet, a formal month-to-month spending plan is a must. It may be easier than you think to establish a budget that will work for you.

1. Set Goals. If you don’t know where your finances are going, how can you reach your destination? Establish your own desired goals for paying down debt and saving money for the future. Goals are a road map to where you want to be.
2. Determine Current Spending. Write down everything you spend over a three-month period. Try to account for ALL of your spending. If you pay by credit card, check your receipts. If you spend cash, write down what it’s for.
3. Determine Your Current Budget. Some people say to use a budget calculator. I tried it and it works. However, I needed more detail so I, actually my husband, came up with this excel spreadsheet for me to work on. I wrote down all the names of all the monthly bills in column A. Then I wrote what the monthly payment or the amount I spent that month next to the corresponding name. For example, column A , line 3, has Peoples Gas, So column B, line 3 , has the amount I owed that month etc. After I had everything filled in I totaled the column. So there it is the amount you spent that month. Now below that total in Column B I wrote my monthly take home and subtracted this amount from the spent amount. This is the final tell all.. You will be able to recognize the excess right away and see where your problem areas are.
4. Create a New Budget. Now it’s time to redirect some spending in ways that will help you reach your goals. If you can, try to find ways to free up more money for savings or to pay off consumer debt.
5. Measure Your Progress. Continue to keep records, and once every three months assess your progress. Are you paying down debt? Are you building your savings? As you go along, you may need to reassess either your goals or your budget.
6. Reward Yourself! Your budgeting efforts should be a combination of hard work and fun, so create a reward system that accompanies each of your financial goals. When you make progress, reward yourself in some small way – have dinner out or go to the movies.