Budgeting Part 2

Continuing with the lists that have been made in Part 1, let's figure out what your expenses look like for each paycheck. I will explain how to figure out expenses on a weekly paycheck, if you get paid every two weeks, simply multiply by 2.

From the Monthly list, take each figure and multiply by 12 (months) and divide by 52 (weeks). For example, for Rent, I have $500. $500 X 12 (months) = $6000 a year. Divide that by 52 (weeks) $6000 / 52 = $115.38. Do this for each of the items in the Monthly List.
From the Yearly list, divide by 52 (weeks). For Car/Rent Insurance I have $1000. After dividing by 52 we have $19.23 in the Weekly column.Finally, add up everything in the Weekly Column. This will determine how much is needed every week to maintain this budget. Do you make this much every week? If not, it's time to reduce some costs somewhere! Do you need that cell phone? We got a TracPhone for emergencies which costs only $100 a year instead of $550. Is there a cheaper company for Car Insurance? Do you need cable and internet? How about hanging clothes to dry instead of using the dryer, that'll help with electricity costs.

Note that I do not include categories for food, clothing, and anything you would purchase from the store. Feel free to add money for that if you feel it would be helpful. I choose not to do so because it is not consistent. I'll explain that later, but be sure to have enough money left after determining your Weekly Expenses vs. Weekly Income.

Budgeting Part 3: "So now what?? How do I keep track of it all?"