2 min

Your budget in 3 steps

Knowing what's left starts with taking out what's already spoken for.

A budget isn't a cage. It's deciding where your money goes before you spend it, so you don't have to wonder where it went at the end of the month.

Write down what comes in during a normal month, after taxes.
Take out the fixed things: rent, power, phone, car, and what you send to family.
Set a little aside for savings, even a small amount. What's left is what you can spend day to day.

Example

You earn $3,000. Fixed: $1,600. Sends: $300. Savings: $150. That leaves $950 for food, gas and everything else, about $31 a day.

Check that number every week. If you overspend one month, don't beat yourself up: adjust the next week.