With the New Year approaching, this is a good time to establish a budget so you can live within your means.
Start by listing out your regular monthly expenses, such as your mortgage or rent, car payment and utility costs. Don’t forget items that aren’t billed, such as food and gas. Add up everything. This total is the foundation for your budget.
Next, think about other incidentals throughout the year, such as seasonal sports fees, vacations and car maintenance. Add these up and divide by twelve to determine what you must save each month to cover it all. Now you have your total monthly expenses and savings needed. This is what you must plan for each month. If something isn’t in the budget, it’s up to you to determine if you can truly afford it or not.