How do I setup a sucessfull budget?
 

k... just got married and things are ok. We get by, and the husband brings home the brunt of our income. I have been wanting to setup a budget to kinda forecast things to come... he had mentioned that he'd like to get to the point where we are a month ahead on all of our bills, though we're not in a position for that now.. I'd really like to work on it because I don't think it'd be something difficult to acheive over the next 7-8 months.

I go to school and work part-time, and he is currently working full time. I don't want him to feel like I'm taking over the finances, I just want to be able to know what is there, what has been paid, and what's left over.. while also being able to save a bit too. I know we'd both be better off if we could easily setup a budget.

Just hard right now because we are moving into another place.. I just think once we do get into the new place it'd be a good idea to start seeing how much our utilities, rent, food, gas, car insurance, car payments, and everything is together and figure out how to put money aside so we don't have to worry each month about making a payment on time. This is more a problem for me because I'm working part-time and not bringing home more than my own bills every month.. so I'm working on getting another job.

BUT, aside from all of that. I just need advice and am curious as to how we can set up a sucessfull budget to start meeting some of our financial goals?

First, wait until you are moved in to the new place for about a month. Unexpected expenses come up when moving...it happens.

Now, for the budgeting part. Add up your monthly income. Next add up all reoccuring monthly bills (rent, utilities, cars, insurance, etc.) As long as this is less than income, you are off to a good start.

Next, look at the times of the month you get paid versus when your bills are due. Try and get your bills to where you can pay them easily from your income. Meaning you aren't completely broke after paying all the bills in the first half of the month but have none in the second half.

After this, you can see how much disposable income you have available. This would be spending money, savings money things like that. Make putting money into savings one of the "bills" so it always happens. Try to not rely on the money you put in savings.

Do this for a few months and you will be able to take the money from your savings and pay ahead on your bills. Once you have done that, you can continue to put money into savings for just savings purposes and use it for whatever when you need it. I heard one financial advisor say that you should keep $1000 in your savings account at all times for emergencies. This does vary a little based on your standard of living and cost of living for your area.

this is a good starting point

http://www.free-financial-advice.net/create-budget.html
(what a great find!!!!)

free template:
http://www.free-financial-advice.net/budget.xls



as far as meeting financial goals... it starts with "PAY YOURSELF FIRST"

That all depends on your goals. If your biggest financial goal is to get out of debt, then pay yourself last. If on the other hand your goal is to start investing and putting money back for the golden years, then by all means pay yourself first.

For example, I just changed my 401K contribution to 0. This gives me an extra $200 a month to pay bills with. I will be able to get everything except the car paid off within the next 10 months because I did this. However I am loosing about 350 a month (my contribution + employer match) to my 401 for my retirement. However after I get the bills paid, I can contribute a higher percentage to my 401 to help make up the difference.