How To Budget Money Tips - Financial Tools

How To Budget Money Tips – Financial Tools

Do you have the dream to get to the milli $ mark? Use How to Budget Money Tips to help you get there. Let’s face it, we all want to get to that million dollar mark. A.K.A. (Fire) Financial Independence, Retire Early! Who is willing to put in that little extra to achieve that goal?

Let’s get it done! Figure out how to budget your money. We should all have a real live budget to work with if we expect to really get anywhere with our finances.

I’m going to show you how easy it is and it only gets easier every time you do it. After a couple of months you will get very excited to see your new net worth.

See my link at the bottom for a really good simple spreadsheet for a budget.

How I was Forced to Use a Budget

Way back, when I was married, the wife payed the bills and ran the budget for our family. Haha! Yeah, right she did. To her, the “family budget” was in her head. The only part of the budget that was in her head was, how much is left in the checking account based on the check register.

How To Budget Money Tips - Burning Money

I found out very quickly, after the divorce, this was not a good enough method. Those were the dark days when it was hard to make ends meet and I had to account for every dollar in and every dollar out.

I needed to quickly learn to pay the bills effectively, account for the future bills. To do this correctly I had to make a solid budget.

It was not a fun endeavor, but it had to be done so I could get out of that hole. I started out with a very simple way of doing it. Then, thought I could do a much better job if I got a lot more technical with it. That was a bust! I went back to the simple proven method that I still use every month today.

I want to help anyone who needs this. I don’t want to see others make the same mistakes I did with my budget. This is the reason for this post.

Now, on to the tips, which is why you are here.

Be Realistic

If your budget isn’t realistic, you will have serious problems trying to make it work. In other words, If you spend $200 a week eating out (not recommended by the way) then you need that in your budget.

If your car payment is more than your rent it should be reflected in your monthly budget. I hope you don’t live in your car. Well, unless you truly want it that way.

Make a realistic budget so you don’t fall on your face coming up short of that savings goal month in and month out.

Your budget should include all costs (every dollar you spend) and all revenues (all the money you make, find or are gifted).


How do you figure out the costs? There are two types of costs, or liabilities. You will want to make sure you write them down separately as some liabilities can change from month to month.

Fixed Costs

The fixed cost in your budget will be the recurring payments you make that don’t change. Such as, rent or mortgage, car payment, insurance payment, child support, loan payments etc.

These can be put into the budget and you don’t have to change them from month to month as you know ahead of time your will have to pay them.

That reminds me! My mortgage payment just changed with the new year. Urgh! I’m not happy about it! They increased the escrow account because they anticipate my homeowners insurance and property tax will go up. Did I mention I wasn’t happy about it!

Anyway, I need to remember to change this (fixed cost) in my budget. Ironic?

Variable Costs

Plain and simple. Variable costs in your budget will be all the other money spent that isn’t a fixed cost.

  • Utility bills
  • Money spent on groceries
  • Clothes
  • Dog food and treats
  • That $200 a week on eating out. Haha!
  • Splurges at Cabela’s
  • Vacations
  • Trips to the bar
  • Sports betting
  • Going to the movies

I think you get the idea. If you don’t, call me.

Unexpected Costs

Oh, the dreaded unexpected costs. These are costs that come up, and they will at some point, unexpectedly of course. Here are some examples.

  • Dog is due for shots
  • Your kid is invited to 6 birthday parties this month
  • Your TV craps out (this may be an actual emergency cost)
  • Parking tickets
  • My stupid escrow account on my mortgage! Urgh!

How To Budget Money Tips - Presents

While we all try to minimize these unexpected costs for me, it seems that every month something comes up that I didn’t expect. I do not like the unexpected costs, it’s a fact of life I guess.

Monthly Budget with Net Worth

I use a simple monthly budget with net worth every month.

See also: Simple Monthly Budget with Net Worth

This post is on my resources page. You can download the one I use there for free.

In that post I show you exactly how to fill it out and it’s very easy.

This one is great because, it’s a simple spreadsheet that you can calculate your Net Worth along with your monthly budget. I like it because, it holds me accountable. It keeps my mind on that net worth figure and how I want it to go up every month. It keeps me from going on a shopping spree that I will regret on my way home.

It keeps me motivated!

The net worth part of it also makes it actually fun to run the budget every month.

Click the link above and download it for free. If you have any problems with it let me know in the comments and we will fix your budget together.

I want to help you get to that million dollar mark while I am on my way as well.

Don’t be afraid to ask for help!

Happy budgeting!

How To Budget Money Tips - one million dollars


12 thoughts on “How To Budget Money Tips – Financial Tools”

  1. It is a rough place to be in when you are the only person bringing home the bacon. MMM, bacon. Anyway, it is definitely a great idea to be frugal and live within your means. I do think, however, that you will never save yourself into retirement. I did jump around a bit on your site here and I saw that you are utilizing a platform that lets you build a business and work towards a passive income. My friend, that is the way to go. The online business arena is going nowhere but up, up, up. My hat is off to ya though, you are on the right path it seems. Just don’t ever give up and never back down!

    • Tina, 

      Thank you for your awesome comment. Bacon is good isn’t it? And thank you for reading hot to budget money tips. 

  2. I really need this, to think I am a woman and don’t know how to save or spend money. and sometimes it bothers me because I will get married and still don’t know how to spend money. I mostly like the fixed cost, and be truthful { realistic}  to my self. Thank you 

    • Betieshair, 

      Don’t sell yourself short! My bet is you’re are better at saving money that you are leading on. 

      Thanks for your comment. 

  3. This is really a. Great post here and one that I truly appreciate so much for sharing out here. To be honest, I really see that the essence of a true. Life has been filled with so many and the beat way is to have a way to check the excess. This is really good and the place of budgeting g can never be replaced.

  4. Hello there this is a really interesting and educative review.  It was helpful. Many of us don not understand the basis of budget. Some of us who understand this cannot account for their money which I happen to be in that category. Reading your article has really given me the necessary tips on how to budget my money.

  5. Hi Russ. I can very much relate to this topic. Also single father, also divorced. I’ve since learnt to work out a budget. Not that it works out 100%, but you have to start somewhere, and you budget is only a guideline. …and then real life happens…!

    Suggestion 1: You might have heard about the idea of the envelope system. Make out an envelope for each budget item, then put in a note of the amount required, and the amount spent/paid. To be honest, this one takes a lot of discpline.

    Suggestion 2: I have two versions of an Excel sheet, one simplified one, and a more detailed one. If you’ve be interested to include that in your article?

  6. Thanks for such an awesome is indeed a financial insight,one thing is to make a budget another thing is to adhere strictly to is pertinent to note that when making a budget it should be according to ur preference which will be a reflection of your income,will go a long way to make an effective budget.


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