Making a budget is an essential part of almost any adult’s life. It’s important to understand how much money is coming in or has been set aside on a monthly basis, and how to spend it wisely. As part of a budget, not only is it imperative to plan on paying all regular bills on time, but also to budget for variable expenses, such as gas and groceries. In addition, no one should forget about saving money, whether it’s for an emergency fund, an exotic vacation, or simply for the future.

Below is a step-by-step guide to creating a budget:

• First, for three months, simply track your expenses. Write down how much you’re spending in certain areas, such as gas, shopping, eating out, or Starbucks purchases. This will give you a good average when creating budgeting categories.

• Now it’s time to create the budget. You can do this on a piece of paper or by using a spreadsheet on a computer. First, write down how much money is available for you to spend each month.

• Then, subtract your fixed expenses. Your fixed expenses include all of your regular bills, such as rent and insurance, which have fixed costs that don’t change from month to month.

• Next, write down your variable expenses. Your variable expenses are items that don’t have a fixed cost, but are still necessary, such as groceries and gas or other transportation. You’ll be able to estimate how much you spend in these categories based on the research you’ve collected over the past three months.

• Once you have subtracted your fixed and variable expenses from your available monthly funds, you’ll be left with a total that is yours to use however you want to, though it is a good idea to put some of this leftover amount into a savings account.

Now that you’ve set your budget, remember to pay attention to it. Keep track of your spending on a weekly basis, and alter your budget accordingly.

If you would like to read more articles about saving money, feel free to peruse our full list of community articles on this website. And if you are not yet a resident at our apartments for rent in Alachua, Florida, contact us or stop by our leasing office to learn more.