Budget Your Expenses

Spend Wisely

Reality-based budgeting for people who have a life

Here's some big news: budgets are smart. Why? Because they help you plan and get the things you want – like a new DVD or concert tickets. You can make a savings plan for bigger things too, like a car. And our interactive Budget Builder makes spending wisely even easier.

The hardest part of setting up a budget is organizing and recording all your expenses, especially the first time you do it. But over time, it’ll become second nature, and you’ll get more accurate about your expenses.

To start, gather your info. Pull together records of all income and expenses, such as:

Any paycheck stubs
Last year’s federal income tax return (if available)
Checkbook registers
Statements (especially year-end summaries)
Cash receipts

Then, get an overview of your financial picture with our Budget Builder. It’s simple to use and will help you:
1. Set goals.
2. Create a savings and spending plan to reach them.

Once you figure out what you make and what you spend, you’ll know your bottom line. If your expenses are greater than your income, you’ll need to cut back. Make sure that you’re paying monthly expenses out of your income – not your credit. Don’t rely on a credit card to cover shortfalls in cash – or your balance will soon snowball into debt. If you have a shortfall, you should review your budget to see where you can cut expenses. Look at your variable expenses. Which ones can you cut back on?

Fixed Expense vs. Variable Expense

Fixed Expenses: Expenses that you have to pay every month, like rent or car payments. These are the expenses you can’t really change.
Variable Expenses: Expenses that change from month to month—think going out to eat, clothes, DVDs.

So it’s time to end the mystery. Find out where your money is going…give Budget Builder a try!

Budget Builder