Helpful Hint: How to Live on a Budget

Instructions

Things You'll Need

• Calculators
• Checking Accounts
• Savings Accounts
• Personal Organizers
• Personal Financial Software

1. • 1

     List all of your expenses, savings and income from the past year. Use your checkbook register, credit card receipts and bills to do this. A computer-based financial program such as Intuit's Quicken may help.

   • 2

     Determine, as accurately as possible, what expenses you expect to have for the next year. You can project expenses for a shorter period, such as the next three months, then multiply by four for yearly expenses.

   • 3

     Enter this information into a ledger or computer-based financial program to accurately track your income and expenses.

   • 4

     Determine what you can reasonably afford to spend each month and then track how well you are doing by entering actual expenses into the ledger or computer program.

   • 5

     If you find that you are spending less than you had anticipated, you may want to put more money in your savings account to help out with unexpected expenses.

   • 6

     If you find that you are spending more than anticipated, try identifying the items you really don't need (new clothes, CDs, expensive dinners) and avoid purchasing them until you are back within your budget.

Read more: How to Live Within Your Budget | eHow.com http://www.ehow.com/how_569_live-within-budget.html#ixzz1NKaGJ66f

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