3 Steps to Manage Money with create Budget

Step 1:  Calculate your monthly household income.
Monthly income includes:
    * What's left of your paycheck AFTER taxes and deductions.  Deductions may include insurance and retirement plan contributions, among other things.
    * Cash benefits from Social Security payments, temporary assistance for needy families (TANF), and other public assistance programs.
    * Additional earnings from alimony payments, a part-time job, or other income sources.

Step 2: Calculate your monthly household expenses.
    * An easy way to track expenses without trying to remember what you bought or locating last month's receipts is to keep a spending journal.  In the journal, write down every purchase you make or bill you pay for one month.  At the end of the month, calculate the total amount you spent.  You should organize your spending into two categories:
          o Fixed expenses (expenses that you must pay each month), such as rent, car payments, heat, etc.
          o Flexible expenses (expenses that change month to month), such as entertainment, clothing, food, etc.

Step 3: Subtract total expenses from total income.
    * If you have money left over, consider saving it in a bank account
    * If your expenses are greater than your income, you'll need to determine how you can reduce expenses or increase income.
   * If you're in debt and can't seem to solve the problem, speak with a Financial Empowerment Center counselor.