Once you know your income and expenses, you’re ready to set up your budget.

Open an Excel worksheet or use a piece of paper to record all the work for your budget

Add up all your income. Use the monthly net income/pay:

3. Add up all your expenses, both fixed and flexible

(1)Calculate your total monthly budget for the cost of living:

Living = Rent + Renter’s Insurance + Utilities (for example: Cable/Satellite, Internet, Cell Phone, Gas/Electric, Home Phone)

(2) Calculate your total monthly budget for the cost of transportation:

(3) Calculate your total monthly budget for the cost of food:

(4) Calculate your total monthly budget for the cost of health:

(5）Calculate your total monthly budget for the cost of personal items:

Personal Expenses = Entertainment (for example: Movie and Concert) + ‘WANTS’ (for example: Clothes, Gift Giving, Travel, etc.)

4. Calculate monthly spending

5. Calculate the balance