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Personal Budget 101

Have you ever wonder how the rich became rich? Did they have a better education than you? How did they know what to do? Many of us have asked these question and have all come up with the same answer. They all had budgets. A budget  helps you know where your money is going. You can than save your money and work towards being rich yourself. I have a few easy tips, with which you will be able to start your own Personal Budget.


We all have bills we need to pay and all of our bills need to be placed on a personal budget. When you first start to create your budget you need to make a list of all of your bills. On that list put down each amount you pay monthly. You will than have a better idea as to were you are spending your money. You may find that you are over spending your money and may need to make cut backs to your bills. This may be hard at first, but you need to learn to spend with in your budget.

Here is an example of a list of bills:

  1. Rent $609.00
  2. Utilities $150.00
  3. Credit Card $200.00
  4. Loan $100.00
  5. Food 100.00
  6. Gas $120.00



Income is how much you make in a months time. When you have add up all of your bills you will be able to subtract from your income. This will let you know if you are breaking even or if you are over spending. If you seem to be over spending you will have to find aways to cut back on your spending. If you have some money left over you may consider to save it.

Here is an example of total cost:

  • Total income is $2000.00
  • Total bills are $1279.00
  • Total left over is $721


Debt is money you owe to your credit cards, loans, and mortgages. When you have debt you have a interest rate by which your debt grows. When you pay the minimum, you are paying mostly the interest rate on your debt. If you are in debt, and would like to get out of debt. I have a few tips which can help you get out of debt.

Tips for getting out of Debt:

  • Pay more than the minimum.
  • Pay off smaller credit cards.
  • Pay off larger credit cards.
  • Do not use credit cards while paying them off.

These are just some basic ways of getting out of debt.


Saving is where you place an amount of money in a bank account to save for your future. I save a percentage of every pay check and place it in my saving account. I knew it was for my future, so this helped me to not spend my savings. If you do save money you will most like not fall into the debt trap. Most American fall into debt do to lack of funds. If you have money saved you will have the funds, when you need them.


A spreadsheet is where you can place your Personal budget. A spreadsheet keeps your budget organize and lets you make changes to it. There are many different kinds of software to use for a budget, but I place mine on my personal computer excel sheet. It may be helpful for you to place your budget in a software program. This is a tool which can help you keep on your Personal Budget.


An investment helps grow your money. Just as when you were in debt you would receive an interest rate, so does your investment. There are many different ways to invest your money and it would be best if you talk to an investment agent. They know which investment to make and how to start the process to invest your money. There are investment which will keep your money safe and investment which can lose your money. When you start to budget you may want to talk to someone about investing your money.

These are just some tips to help you start your Personal Budget and lead you down the road to success. After you have budgeted for a while you may find yourself among the rich and others will ask you the same questions you have asked.


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