If you are working at a job where your income changes from week to week, go back through your history and figure out what the average amount of income you made was. 

Then, do a reality check with yourself and figure out if you can count on this amount in the future.  If it is not stable, list the smallest pay check that you have received and see if you can make your budget around that amount. 

Next, think about other sources of income that you might have forgotten.  Here is a list to jog your memory:

• Your reoccurring pay check
• Your spouse’s (or any other income earner’s) pay check
• Interest from bank accounts
• Social security income
• Disability income
• Income from investments or funds
• Income from a second job or from seasonal work

Step 3:  List all of your expenses.  To start with, just list the items and amounts that you are currently spending.  Often, this list is harder to compile than the one for the income in Step 2 because it is not as easy to track the spending.

 

Start by listing the items that you know you will have to pay for every month, including rent or mortgage payment, car payment, loan payments, and any other reoccurring monthly bill. 

Also, don’t forget to include the categories that are essentials for living – such as groceries, electricity, water, heating oil, and more.

 

Other items to include are telephone bills, television or cable bills, internet bills, automobile gasoline, and any other entertainment or miscellaneous purchases.  Because it can often be overwhelming to list all of your expenses in one place like this, it is recommended that you find a software program to help you with your budget.

Later on, we will recommend several different software programs that you can use to help.