How to Create a Successful Monthly Budget That is Achievable Now. Is money tight? Do you have debt that you need to eliminate or pay down? Do you have financial goals that you would like to achieve? You are in the right place because all of this is possible by making and sticking to a monthly budget that will save you more money to do the things that are important in your life.

No one likes monthly budgeting. Let’s face it, we don’t really like the thought of tracking down where our money goes each month and finding ways to cut down. Cutting back is tough because it involves things we like to do, like eating out, entertainment, or hobbies.

While it is somewhat of a meticulous process to track our monthly spending, it is not as hard as you might think. Looking at your monthly mortgage, or rent, insurance, bank statements, and credit card statements will give you the majority of what you need.

There are many types of monthly budgets out there that you can use. The 50 30 20 rule budget plan is one example that is simple to use to sort out your income, expenses, and savings.

Let’s take this step-by-step and see if we can help you reduce spending and save more money to put toward the important, long-lasting things in your life.

What are Your Financial Goals?

The first step is to write down your financial goals. This is the carrot that will motivate you and keep you on track.

Your financial goals may be long and/or short-term, it doesn’t matter. Here are some examples of financial goals:

• Emergency fund
• First home down payment
• A bigger home
• Your student loans or your kid’s future education
• Paying off debt
• Retirement
• A new boat or bigger home

Write Down All of Your Income, Expenses, and Savings

Write down and add up all your monthly take home income. If you get income from anything else other than your job(s), add them all up. If you pay into a 401k, IRA, or some other retirement plan, add in what you pay into it each month. This is your total monthly income.

Now write down and add up your monthly expenses. They include things like:

• Mortgage + property taxes, insurance, or rent
• Groceries
• Utilities, such as electricity, water, and sewer service
• Car payments, insurance, and gas, or public transportation costs
• Phone and Internet costs
• Eating out (this includes the morning coffee shop on the way to work)
• Hobbies
• Vacations
• Cable TV or streaming services like Netflix, Hulu, Disney+, etc.
• Any other subscriptions and/or incidentals that you routinely spend money on

Next write down what savings areas and amounts that you currently put money into like:

• Emergency fund
• 401k, IRA, Retirement savings or investments

Also write down what additional savings amount you would like to increase. This is the goal and what needs to come from your expenses.

Time to compare areas of your monthly budget

Now is the time to put everything together. Compare your total money coming in with your total money going out. Hopefully you have more money coming in than you do going out. If that is not the case or you want more, you are definitely not alone. That is why you are here. Time to do something about it.

It’s never too late to get your money in order and start managing finances to get where you want to be. You may come to find out that you are spending $200 a month on lunches or $7 on coffee at Starbucks every morning. No one says you must cut out all the good stuff, but you can cut back by substituting alternatives a couple times a week.

What about your cable or satellite TV bill? Americans spend on average over $1,200 a year on cable or satellite TV. That doesn’t include added channels like Netflix, Hulu, and Disney+. Can some of this be trimmed down a bit and save you money? See my post on 11 Options for the Best Affordable Alternatives to Cable TV for some great alternatives to Cable or satellite TV.

Savings and Investments

People often wonder “how much should you save a month”? That really depends on what you are saving for. You should always save money for a rainy day or emergency fund. Have a little something in a savings account that can be pulled out today if necessary.

You should always save/invest for retirement. You may not be thinking about it much in your 20’s, but it will sneak up on you fast. Believe me, I know.

Anything else you want to save/invest money for depends on you. Maybe it is for a home, kid’s education, or special occasion.

Your monthly budget

The point to all of this is for you to know where your money is going each month and see if you can put some money away toward a better life.

There are many different methods you can use to make and use a monthly budget, but sometimes the best budgets stem from knowing where you are spending your money and things you can cut out or reduce. I highly recommend a Budget Planner to help show and track everything in your budget.

Thank you for reading and please check out my other managing finances articles such as How to Save Money Fast – Saving Money Tips.