Succeeding in the World of Work

Chapter 20: Managing Your Money

Personal Academic and Career Portfolio Help

Creating a Budget

When creating your budget, a budget worksheet can help you organize your income and expenses. Most consumer credit counseling services offer free budget worksheets on their Web sites. Remember to use your net, or take-home pay, to calculate how much you can spend, and to include periodic or seasonal expenses such as vacations, holiday gifts, winter heating bills, and so on. If you find that your expenses are more than your income, look for ways to trim your expenses.

Your budget will change as your life circumstances change. Look at your budget every month and adjust it as needed. For example, if you receive a raise, you will have more money to save and spend. Or, if your rent is increased, you will have less available money. Keep blank budget spreadsheets handy. Make one for every month and keep it handy to keep yourself on track—it is easy to lose track of your spending. At the end of a year, look at each month's budget. This will give you a good idea of what to budget for the next year.