Before we jump into budgeting, let's do some "pre-budgeting." I want you to grab a notebook—yes, a real paper one—and a pen. There's good reason for this: studies have shown that handwriting things down helps them stick in your brain better than typing.
Now, let's get a complete picture of where your money is going. In your notebook, list every single expense you have. This includes bills, subscriptions like Netflix, and even the average amounts you spend on groceries and gas each week. For each item, write down the amount and the due date.
Example: Monthly Expenses
Mortgage: $1,000 (Due on the 1st)
Electric: $200 (Due on the 15th)
Daycare: $55 (Due each Monday)
Gas: $20 (weekly)
Groceries: $100 (weekly)
Netflix: $7.99 (Due on the 20th)
Once you've done that, create a new section for your income. Write down how much you make and how often you get paid.
Example: Income
$500 per week (paid on Friday) = $2,000 for September.
Now for the math: add up all your expenses and subtract that total from your income. In our example, total expenses are $1,982.99 and income is $2,000, leaving a positive balance of $17.01.
Even a small surplus is a success! However, if you find that your bills are more than your income, you need to start looking for things to cut. Maybe Netflix isn't a necessity, or you could save on groceries by shopping around. The goal right now is just to get out of the red. If you've already cut everything you can, then it's time to focus on ways to increase your income.
So, what do your numbers tell you? Are you in a surplus or a deficit? Whatever the result, please know there's no judgment here. The good news is, we're going to work on it together.
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