{"id":1262,"date":"2019-08-17T00:00:00","date_gmt":"2019-08-17T00:00:00","guid":{"rendered":"https:\/\/qa.simplifimoney.com\/blog\/how-to-make-a-budget\/"},"modified":"2024-11-18T10:22:32","modified_gmt":"2024-11-18T18:22:32","slug":"how-to-make-a-budget","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/how-to-make-a-budget\/","title":{"rendered":"How to Make a Budget That Maximizes Your Money"},"content":{"rendered":"\n

Hoping to gain better control of your finances? Then it\u2019s time to learn how to make a budget. If you\u2019re thinking \u201cugh\u201d right about now, you\u2019re not alone. For most folks, the idea of planning and implementing a personal budget is the exact opposite of fun. In fact, according to a recent study conducted by U.S. Bank, only 41% of Americans claim to use a budget<\/a>.<\/p>\n\n\n\n

But here\u2019s the upside: planning a budget is easier than you may think, and a little effort now can make all the difference<\/a> down the road\u2014especially when you\u2019re nearing retirement<\/a>. We\u2019ll walk you through the basics of budgeting step by step, so you\u2019ll have all the information you need to start maximizing your money and planning for a more secure financial future.<\/p>\n\n\n\n

How to Budget Your Money in Five Steps<\/h2>\n\n\n\n

Add up all your sources of income<\/h3>\n\n\n\n

Start with your monthly income. If you work full-time and receive a regular paycheck, that may be your only regular source of incoming cash. Make sure to use your net income rather than your gross income, i.e., the money you take home after all deductions for items like taxes, health insurance, and 401(k) contributions.<\/p>\n\n\n\n

Next, add in any additional sources of income<\/a> you receive each month. This could include returns from government benefits, alimony, child support, interest and dividends earned from investments, and anything you may earn from side hustles, such as selling items on Ebay.<\/p>\n\n\n\n

Add up all your expenses<\/h3>\n\n\n\n

After you\u2019ve identified and added up all your sources of income, begin writing down all your expenses. To make sure you\u2019re not forgetting anything, it\u2019s a good idea to review your credit and debit card statements and all receipts you\u2019ve saved over the past month.<\/p>\n\n\n\n

If you\u2019re unsure where to start, many budgeting experts recommend separating your costs into fixed<\/a>, variable<\/a>, and discretionary<\/a>. Fixed expenses are those that remain roughly the same each month, and generally represent the biggest chunk of your budget. They can include:<\/p>\n\n\n\n