How do you set up a budget and stick to it?
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5. Get a whiteboard. Preferably one with some kind of division on it.
6. Write down the totals that you get every week for Gas Food, and entertainment. Also write down what you set aside each paycheck for bills.
7. Get a money managment software, quickbooks is what we use.
8. On the whiteboard every time you spend money that comes out of your bank account remove it from food, gas, entertainment or bills. .Whichever is appropriate.
9. On the board write down the amount you spent and where you spent it.
10. Once a week download your account informantion from your bank, import it into qickbooks or whatever else you used and erase the items that have cleared from the board.
11. If you miss something then remove the amount you forgot form the board.
Couple of tips.
NO CASH TRANSACTIONS. If you follow this rule then you will always have the exact amount you spent listed in your bank account.
KEEP THE BOARD ON A WALL YOU SEE A LOT. Ours is in the dinning room and previously was in the living room. Even when friends came over it was right out in the open. By doing this you will follow your budget better because the money you have will be right there where you can see it.
This system has worked for my wife and I for 7 years now. When mortgage, car payments, student loan payments are due we can just pay them without any worries as the money is just wating in the bank.
Good luck.
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