Tips for creating a percentage based weekly budget

Having a budget is a big deal, if you can put together a percentage based weekly budget you will be more likely to withstand the temptations of credit cards, pay day loans, and the other easy money that comes with such a high price. You will be more likely to be frugal and live within your means. A well planned budget is one of the best ways to achieve your financial goals, and achieve financial success, both long term and short term.

There are a lot of reasons to consider a percentage based weekly budget.

One is that no matter what you make, you will save, you will pay your bills, and have money to spend and play with. The amount depends on what you make, which can also make it a big motivator to work harder.

The next reason is that it is practical for those who do not have a set amount they make every day. If you have a variable income, such as getting paid on commission, or being self employed, then you know the challenges of sticking to a budget. A variable income makes it very difficult, but if instead of round numbers you pay percentages into specific category of your budget, so you can enjoy the ability to spend.

Part of the reason a weekly budget is such a good idea is that it is easier to stick to, if you do not stick to it you can start fresh the next week.

So, how do you create one?

Before you begin a budget you must know how much money you are making weekly on an average so that you can see how much of it percentage wise will need to go toward fixed bills.

Next look at your weekly and monthly expenses, including any money that you spend on fun things like eating out, entertainment, recreation, and any minimum payments that you pay toward your debts. Make sure you save some, and have an emergency fund in this category.

Next, figure out the percentages. If you subtract your expenses from your income, do you have anything left? If you aren't cutting it, then go back and rework your budget, make cuts. You may need to go to movies less so you can pay your bills. You will want to do this with your percentages and budget until it makes sense. Once you can pay your bills, have money left over, and still enjoy life, you have a workable budget.

Next, consider your long term financial goals. Budget for these, and make sure that part of your budget includes being prepared for emergencies, and having some sort of savings.

Make a list of what you want to achieve financially. Plan for your retirement. By making a list of what you want to achieve financially, you may find that you need to adjust your budget again to attain these goals. If you have a lot of debt, you may need to determine if you are able to pay extra each month of those payments to eliminate those faster.

When making your percentage budget, be sure that you budget some for fun. If you do not then you will slip more often because you won't have anything fun in your life.

Once your budget is created, start using it. If you need to adjust it, do, if it is working, then keep using it. Life changes, so your budget can too, but keep up with it and your personal finances will be in much better shape.