Hillsborough County Extension
Budgeting

Developing a budget helps you gain control over your financial situation. A budget should include monthly expenses and money dedicated for savings. If you dedicate money towards savings you are building financial stability.

Steps to developing a budget:

1. Calculate your monthly take home pay.
2. Calculate the cost of all expenses. This will include items such as rent/mortgage, car payments, utility bills, telephone, cable, health care, and personal items.
   Remember to include expenses that do not come as a monthly bill. Fast food, movie and game rentals, lottery tickets, and household maintenance products are examples of items that are often forgotten when developing a monthly plan.
3. Set aside a fixed amount for savings. Start with a small amount and increase when you can. Consider having part of your income directly deposited into a savings account.
4. Set aside money to cover seasonal or periodic expenses. This will include items such as car insurance, holidays, birthdays, vehicle registrations, school tuition, and vacations.
5. Keep a record of daily expenses. Spending big dollars on small low value items can prevent you from accomplishing more meaningful financial goals. So start keeping a daily record of how much you spend on miscellaneous items. Sample Expense Tracker (pdf format, 14 kb)

Sample Budget Template (pdf format, 62kb)

Developing a spending plan gives you an opportunity to take a realistic look at your financial situation. Is your income greater than your expenses? Living within your means is a critical part of financial stability.

If you find your expenses are more than your income or you are just breaking even, you need to make some decisions. Can you decrease expenses? Can you increase your income?