Do You Even Budget? A Helpful Guide to Creating a Budget

Do You Even Budget? A Helpful Guide to Creating a Budget


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Creating a Budget. No one enjoys doing it, but it is a necessity. It allows you to create a spending plan for your money and ensures that you will always have enough money for the things you will need in the future. Following a budget will also help to keep you out of debt and, if you’re already in debt, it may help to get you out of it.

So how do you create a budget? Well, keep on reading to find out.

Know How Much You Have

If you have a few different bank or building society accounts, make sure you know how much is in each of them. It’s also important to know how much interest you’re paying on each account.

Know How Much You Make

Make sure you determine the average amount of monthly income you receive. If your income is irregular, then the best way to find this out is to average out the last 6-12 months of recurring income and use that figure.

Know What You Owe

To find out what your monthly recurring debt payments are, calculate the total amount owed on each debt account, as well as the minimum monthly payments. This list should include things like car loans, mortgage repayments and any other debt that you or your family pays on a monthly basis.

Doing this will help you determine your net worth.

Net Worth?

Once you know how much money you have and how much you owe, you can easily determine your net worth. To do this, simply subtract what you owe, from what you have, and write that number down.

Now Let’s Move On To Expenses

The best way to find out your monthly expenses is to keep a list or receipts for a month and add up the recurring ones, such as food or transportation.

To keep things simple try to put your expenses into categories.

Database Time!

There are loads of software tools out there to help you budget like You Need A Budget and Mint. Microsoft Excel is another great (and free) tool you can use.

But don’t let any technology fears stop you from budgeting. Most are easy to use, but you could also do it the old-fashioned way and whip out a pen, paper and a calculator.

Adjust Accordingly

If you find out that you’ve been overspending, you’re going to have to make cuts to your expenses. The same goes if you’re given a pay rise at work or are made redundant. Your budget needs to be as up-to-date as possible so you can monitor your spending.

Pay Yourself

Sounds nice, doesn’t it? It just means that if you can afford to save, then SAVE. You don’t always have to save large amounts to reap the rewards. Think about it; if you put €20 away every week for a year, it will add up to €1,040.

Go Forth and Budget

So there you go. Now you know how to create a budget! Make sure once you create your own budget, you stick to it. If you stray, make a note because it will only help you in the future.


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