Amateur's Guide to Creating a Budgeting Process

Creating a budgeting process is one of the most important steps that we all need to take. Properly budgeting our money can prevent us from overspending on unnecessary things. Here are a few tips for creating a budgeting process that works for your family.

Determine Needs

The first thing that you need to do is determine exactly what you need. Look at past financial statements and see what realistic numbers are for every spending category in your life. Determine how much you spend on groceries, how much you spend on entertainment, and every other possible categories. Figure out what realistic numbers would be for each category over the course of a week or month.

Envelope Budgeting

One of the best techniques that you can use is called envelope budgeting. This involves creating an envelope for each spending category. Then, every time you are paid you place the appropriate amount of money in each envelope. Then when an expense comes along, you take the necessary amount of money out of the appropriate envelope and use it. This strategy allows you to see exactly how much money you have left in each category. If you don't feel comfortable working with cash you can do the same thing with budgeting software. The important thing is to know exactly how much money you have left in each category.

Budgeting Software

In addition to utilizing an envelope budgeting process, you could implement budgeting software as well. This could allow you to use the same strategy as the envelope budgeting process, without dealing with cash and envelopes. Budgeting software allows you to track your expenses along the way. You could link it into your bank account and it can break down each expense into its specific category. You can also set a monthly or weekly budget for each particular category. Every time you have an expense, it will deduct the amount from the appropriate category. Then you will be able to see exactly how much you have left of your category budget.

Budgeting software can be specific to a particular computer or some of it can be accessible online. Online budgeting software also offers you the capability to access your budget from your mobile phone as well. This will let you find out exactly how much you have left of your budget whenever you need the information.


Once you implement a budgeting process, you need to make sure that you stick with it. Consistency is perhaps the most important part of the budgeting process. Anyone can come up with a nice budgeting plan, however, without the proper consistency, none of it will matter. Starting out with a smaller budget on a weekly basis is usually easier. It allows you to focus on meeting smaller, achievable goals on a weekly basis and keep yourself from becoming overwhelmed. Once you get in the habit of checking your budget, the process will become much easier.

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