To jump-start your budget, follow these steps:
- Make a list of your monthly income and expenses using our budget worksheet (PDF). Put each dollar into a category, like housing, food, savings and entertainment.
- Look at how your spending compares to the goal: 50% for needs, 30% for wants and 20% for savings (see chart). That’s the target experts recommend.
- To reach the savings goal, assign money to savings and use what’s left for wants. Tip: Set up automatic contributions or deposits to stay on track.
- Review your budget each month. Adjust it as needed to handle changing expenses and priorities.
