Create a realistic monthly budget

The dreaded "B" word

The dreaded "B" word. Budget. The only other word that starts with "B" that might generate a worse reaction in most people is the word bankruptcy. Unfortunately, many people view a budget as a straight jacket that keeps them constrained. However, when you see that a budget is just spending your money with intention, you'll actually experience more freedom than before. Many people who have followed your tips had said they've found even more money when they created a realistic budget and stuck with it. Check out our free monthly budget forms to help you.

Here's some helpful advice about budgeting:

• Give your budget at least 3 months to start working. It won't be perfect the very first time you do it, so give it time.
• Spend every dime on paper before the month begins.
• Over-fund your groceries category. Most people under fund that category. Dinning out should NOT be in this category!
• If married, spouses need to do the budget together! After creating the budget support each other to stay on track.

What should be on your monthly budget?

Below is a list of things you should have included on your monthly budget. A monthly budget is nothing more then a list of :

• Housing: mortgage or rent, home owners insurance, and property tax (if your tax is calculate annually, divide by 12 to get the monthly amount)
• Transportation: car payments, gas, car insurance, car repairs (average or estimated monthly amount)
• Household/Utilities: all the basics like water, electric, gas/oil, phone, TV/cable/satellite, yard service, internet.
• Food: groceries and meals out (including Starbucks) - for most families, this is one of their biggest bills -- how much could you save by buying in bulk, stocking up on sales items, looking for coupons?
• Education: expenses for pre-school, private schools, college, etc.
• Medical/Health: health insurance, prescription drugs, gym memberships, chiropractors, massage, dentist, glasses, etc.
• Clothes: new clothes, dry cleaners, etc.
• Personal/Leisure: pretty much all the other non-essential expenses, vacations, hobbies, movies, DVD rentals, ball games, pet bills, gifts, kids athletics, etc.
• Other Debt: additional debt such as student loans, credit card bills, etc.

How can you save money? Adding up all your monthly expenses tell you how much money you need each month to break even and pay all your bills. If your income doesn't cover your expenses, you have 2 options -- cut back on your spending, get another job and/or increase your income. For most people increasing their income isn't an option, so you're left with one option and that is to cut your spending. Most notably your expenses in your Personal/Leisure and Food (meals out) - taking your own lunch and cooking a quick dinner and cutting back on how much you dine out will save you a lot. Figure you go out for lunch each four days a week at a cost of $5.00 each day - that's is $80.00 a month ($5.00 x 16/days a month = $80.00). $80.00 spent on groceries would go a lot long way then that spent at a McDonalds® or Subway®.

While the Personal/Leisure and Food categories are a good start, every category needs to be looked at and only you can determine what is absolutely necessary and what's not. The important thing to remember is to create a monthly budget that will not only reduce your expenses but is also something you can live by each month.

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Debt-Made-Easy.com has gone to great lengths to ensure the accuracy of the information presented regarding debt consolidation, debt help, credit card debt, becoming debt free, debt problems, and debt elimination tip, however please be aware it is provide only as a guide.