How to make a budget - from Dave Ramsey

The biggest challenge I see with people struggling to make ends meet is a lack of budget, or at least an understanding of incoming and outgoing money on a weekly, monthly, and yearly basis.  Understanding the basics of your finances and establishing an appropriate budget is a great start to getting your head above water.  Here is a quick write up from Dave Ramsey on how to make a budget:

HOW TO MAKE A BUDGET

1. Write down your total income for the month.

This is your total take-home (after tax) pay for both you and, if you're married, your spouse. Don't forget to include everything—full-time jobs, second jobs, freelance pay, Social Security checks, and any other ongoing sources of income.

2. List all your expenses.

Think about your regular bills (mortgage, electricity, etc.) and your irregular bills (quarterly payments like insurance or HOA) that are due for the upcoming month. After that, total your other costs, like food, gas, and entertainment. Each dollar you spend should be accounted for.

3. Subtract expenses from income to equal zero.

This is called a zero-based budget, meaning your income minus your expenses should equal zero. If you're over or under, check your math or simply return to the previous step and try again.

4. Track your expenses throughout the month.

Once you start the budget, you'll still need to stay on top of your expenses.

Here's to 2020: The year you stick to a budget and make more progress than EVER before!!

Reference:  https://www.facebook.com/daveramsey/posts/10156918550530886