- 1). Calculate your monthly income over the past 12 months and average it to get a monthly income. This will give you a starting place to create or fix your budget. You may want to estimate lower than the average to be on the safe side, unless you have a healthy savings.
- 2). Make a list of all your fixed expenses. This includes your rent or mortgage, loan payments and utilities. The total of these expenses represent little flexibility. Though your income is unfixed, you still have fixed expenses. Create a second list of expenses that have wiggle room, such as entertainment, gasoline and food.
- 3). Create a savings plan and decide on the amount of cash you plan to deposit into your savings account each month. Then decide how much you plan to spend each week. Limit your trips to the ATM to once a week and do not go over your budgeted cash amount. Only withdraw cash on a weekly basis and save any extras for the following week. The savings will help you feel secure.
- 4). Cut your spending and only pay cash for anything you buy. This will force you to stay within your budget and avoid any spending issues you may have had with credit cards or buying things you couldn't afford. Make cuts in your budget for non-essentials that you can live without. For instance, save money by getting rid of satellite television or radio, stay in one night and make dinner on a night you typically go out.
- 5). Sell your home or car or move to a less expense rental if you really need a radical change to fix your budget. Live closer to your means now that you have an idea of your average monthly income. If you don't need such a nice car or large home, purchase a used older vehicle and move to a smaller home in a less expensive area, if possible.
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