Coming up with a personal budget can sometimes prove to be very difficult. In order to stay on top of your finances, it is necessary to develop some type of a budget to work with. Here are the basics of how to come up with a personal budget.


One of the most important parts of the budgeting process is to prioritize your expenses. You need to devote more resources to the things that are important to you and cut back on the things that are not. For example, if you want to put an emphasis on saving money for retirement, you may need to cut back on things like your TV subscription or how many times you eat out at a restaurant per month.

Envelope Budgeting

One of the most time-honored strategies of budgeting is referred to as envelope budgeting. With this process, you are going to come up with all of the different categories in which you spend money on a regular basis. You will write each category on the front of a blank envelope. You are then going to allocate a certain amount of money to each one of your categories. When you get paid, you are going to cash your paycheck and put the appropriate amount of money in each envelope. When the expense comes up, you take the cash out of the appropriate envelope and spend it. Then when you get to the end of the funds in the envelope, you will have to wait until you get paid again to spend any more. This process forces you to spend only the amount of money that you have available to you instead of overspending.

Miscellaneous Budget

Another technique that you can use is to have a miscellaneous budget to work with. You are going to allocate the appropriate amount of money to fix expenses such as your mortgage payment and your car payment. Then, for the things that fluctuate every month, you will have a certain amount of money that you are going to spend. After that point, you will stop your spending for the month.


There are many different tools that you can use to help with your personal budgeting. For example, you could utilize one of the many budgeting software programs that are available. Many of these programs provide very valuable assistance when it comes to your budgeting process. For example, you could use online budgeting software that helps you keep track of your expenses. You can get access to software that will link in with your bank account, your credit card account, and any other financial accounts that you have. Whenever you have a transaction, it will immediately be transferred into the budgeting software. This amount of money will then be deducted from the appropriate spending category and you will immediately know how much you have left to spend for the rest of the month in that category.

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