The Millennial's Guide to Money - Part 4 Creating a Budget That Works For You

Ready to finally get your money in order? Learn step-by-step how to gain control of your money and begin to build some wealth in this 6 part series!  Part 4 is all about creating a budget that works for you.

The Millennial's Guide to Money - Part 4 - Creating a Budget that Works for You

The Millennial's Guide to Money - Part 4 - Creating a Budget that Works for You

PART 1 - How to Organize Your Money
PART 2 - How to Automate Your Bills
PART 3 - Automate and Eliminate Your Debt
PART 4 - Creating a Budget That Works for You
PART 5 - Invest in Your 401k
PART 6 - 10 Awesome Personal Finance Tips for Millennial's From the Experts

Hope you are enjoying the series and gaining a ton of valuable information. Keep tackling those action steps and you’ll get there one step at a time. If you’re just jumping into this series, make sure you start at part 1. You can link there at the top or bottom of this article.

Welcome to part 4! Are you making some serious progress? Beating down those action steps?

Right now is the best time to get your personal finances under control. Why?

It’s never been easier to manage your money because of the resources and tools available now to everyone. You can save $100’s and $1,000’s of dollars a year by taking steps to eliminate ridiculous fees and interest with simple action steps.

You can begin to earn more money and eliminate stress. You can teach your kids a better way to live. All by just taking small steps toward the greater goal of getting your money under control.

If you put this off for another 6 - 12 months you’ll be in the same spot you are today: buried in debt and debt payments, paying lots of interest, paying bank fees, struggling to pay bills, no money in the bank.

Don’t let that happen to you. I escaped that mess and you can too. I’m not special. I just took actions steps towards my goal. Lucky for you, I’ve got action steps at the end of each step in this series!

Don’t wait! Take action today!

Ok, on with the steps, let’s get started on step 4!


BONUS: DOWNLOAD THE THE MILLENNIAL’S GUIDE TO MONEY: ACTION STEPS CHECKLIST!

The Millennial's Guide to Money - Action Steps Checklist

This step by step checklist will give you what you need to take the next step in your own life. Put it on your wall, on your desk, basically anywhere you’ll see it daily. This will help you follow along and keep your steps in your mind daily, so you don’t forget about your goal.


Step 4 - Create a Budget That Works For You

Creating a budget that works for you can be life changing. There are many ways you can budget. You can try various budgeting methods to figure out what fits in your life. Paper, spreadsheet, or apps can all work.

List your total monthly income. List all your discretionary and monthly expenses. Assign a dollar amount to each category. If you have money left over, create a savings category for future expenses.

Make sure you give every dollar you bring in monthly a role. In other words every bit of your monthly income should be assigned to an expense or savings.

Here are some examples to get you started:

  • Income

    • Paycheck

    • Child Support

    • Alimony

    • Side Hustle

    • Rental Income

  • Expenses

    • Mortgage

    • Rent

    • Electricity

    • Water

    • Trash

    • Internet

    • Cable

    • Satellite

    • Car Insurance

    • Home Insurance

    • Credit Card

    • Line of Credit

    • Student Loan

    • Netflix

    • Car Payment

    • Fun Money

  • Savings

    • Vacations

    • Emergency Fund

    • New Car

    • Taxes

    • Home Down Payment

Don’t forget that a budget is not always an exact science. You have to adjust as necessary. If one expense is more than you had budgeted for, pull from another category and add to the one you overspent in.

Stick with it and you will truly understand where all your money is coming from and going each month, allowing you true control over your monthly finances.

There are lots of budgeting tools out there. You’ll have to try them out and see what works for. Some of the best are:

  • Spreadsheet

  • Mint

  • YNAB (You Need a Budget)

Try them out! Figure out what works best for you!

Action Steps

  • List your monthly income

  • List your monthly expenses and assign a dollar amount to each

  • List your savings and assign a dollar amount to each

  • Choose your tool to track your budget

To help you out, send me a copy of your rough draft budget. Send me a picture of your hand written paper, your spreadsheet, or however you made it. I’ll take a look and let you know if you are on the right track.

Watch for Part 5 next week!

PART 1 - How to Organize Your Money
PART 2 - How to Automate Your Bills
PART 3 - Automate and Eliminate Your Debt
PART 4 - Creating a Budget That Works for You
PART 5 - Invest in Your 401k
PART 6 - 10 Awesome Personal Finance Tips for Millennial's From the Experts

 

- David Shepherd - Creator of Let's Automate Your Life