Etienne Kiss-Borlase shares advice on how to create a budget and stick to it.

1. HOW TO
CREATE A
BUDGET
AND STICK
TO IT
Etienne Kiss-Borlase

2. 02
Do you ever feel like your paycheck disappears as soon as
you get it, and you no idea where that money is actually
going? One way to fix this is to create a monthly budget.
While creating a budget and sticking to it may seem
impossible, breaking it down into four easy steps makes it a
much more surmountable task. Having a budget helps you
track where all of your money goes, and where you can
reduce monthly expenses.
GETTING
STARTED

3. STEP 1
Write down your net income for the month
03
To start creating a monthly budget, first, calculate
all of the money you make in a month. Remember
not to include any money that goes to deductions
(Social Security, taxes, 401(k)). Remember to include
all sources of income, including full-time work, part-
time jobs and freelance work.

4. STEP 2
Next, calculate how much money you spend each month.
Account for every dollar. Start with all of your fixed
expenses (regular monthly bills such as mortgage, car
payments, utilities, etc.). Then, list all variable expenses.
These are items such as groceries, entertainment and credit
card bills. Look for any opportunities to cut back.
04
LIST ALL OF YOUR
MONTHLY SPENDINGS

5. STEP 3
Create both short and long-term goals for your
money. Do you want to start saving for retirement?
Your children’s education? Write those down and
allocate how much money should be given monthly
to these goals. These don’t have to be set entirely in
stone, but having an idea of where you want your
money to go in the coming years will help when
planning your budget.
05
Set your money goals

6. STEP 4
Review budget periodically
06
Once you have your budget, don’t just set it away
and forget about it. Check it monthly and make any
needed adjustments. If your income changes,
recalculate your budget. If you want to change one
of your goals, re-examine that. Make notes of any
areas where you spent more than you budgeted for
and how you can improve on that.

7. STAY ON
TRACK!
Now that you have your budget all planned and written out, make
sure you follow through with it! Use a budget spreadsheet or a
personal finance app to make sure you’re staying on track.