How to start—and stick to—a budget

Deciding to make a budget is an important step in taking control of your finances. The next step is figuring out how to make a budget that’s right for you. These four steps can help you create a budget that you can stick to. 1) Figure out how much you’re currently spending Without knowing this key piece of information, it’s challenging to create realistic saving goals, so invest a little time to figure out where your money’s going. A typical budget might include categories like mortgage/rent, food, loans, transportation, utilities, child care, and medical expenses. Some other spending categories that could make the cut are things like clothing and entertainment. Create categories that are right for you. To accurately figure out your spending habits, try the following: Carry a budget notebook or another way to take notes. Every time you make a purchase, write it down and categorize it using the categories above. Go through your checking account line by line and categorize everything. If you use online banking, there are free websites that do most of the work for you. Know where you’re spending, without spending any effort. Once you set up your spending goals, they will also send