Financial Friday: Step 1: Getting ready to start a budget

>> Thursday, September 17, 2009

As I have mentioned, being a professional live in nanny has wonderful benefits and sometimes a downfall of falling into debt. I have been working with a budget lately and wanted to help others set one up so they can be as financially responsible.

Over the coming weeks, I am going to share with you how to set up a budget along with weekly homework assignments that help you get to the next step in making a budget.

This week we will gather money totals for everything - money coming in and money going out. I suggest getting a one subject notebook for your budget and keeping things together. We will eventually put the budget on a spreadsheet so that it will do the calculating for you.

Here’s what you need to get started:

For all of the following you need the amount due, payment due date, amount of loan/balances of accounts, and interest rates

  1. Your last paycheck (preferably two) and a schedule of when you get paid (weekly, bi-weekly, bi-monthly, etc) with dates

  2. Credit card bills (most recent)- Visa, Mastercard, Sears, Discover, Kohl's - all of them

  3. Banking information - this includes checking, savings, money market, CDs, Savings Bonds including fees.

  4. IRA/401K/Brokerage account balances and information

  5. Insurance paperwork - car, life, health, pet, home/renter's, etc.

  6. Utilities –phone, cell, internet, cable/satellite, electric, rent, water/sewer, trash, and appliances etc

  7. Student loans or other personal loans

  8. Prescription & health care costs

  9. Subscription/Membership fees - Health club dues/fees, Netflix, union dues, etc

  10. Doctor/dentist visits

  11. Daily living:
    Groceries, clothing, eating out, dry cleaning, salon/spa services, gas, snacks, bus/metro/subway/cab fares, movie rentals, concerts, purchase of music/DVDs/books/toys/birthday presents, pet supplies, magazine & newspaper subscriptions,

  12. Yearly/Semi Yearly expenses: car insurance, organization membership fees, conference fees, hotel fees, vacation, tuition, music/language lessons, charitable donations

  13. anything else that you pay for or collect interest on

    This is a large list of items to work on. I promise you that when we get this budget together, you will feel great about yourself.


In addition, to gathering the

above information I would like for you to track ALL of your EXPENSES for this week. You can carry an index card and write down all cash/credit/debit purchases or write them in a notebook. This will help us figure out where you money goes and what kind of budget you need to work with.

Feel free to ask if you have any questions. Let me know if you are going to work on a budget along with me - there might be a special giveaway at the end of all these homework assignments.



Blog Widget by LinkWithin

Disclaimer & Privacy Policy

I am not a certified financial planner. Any posts or pages written within this blog is the opinion of myself and not to be taken as financial advice. Any actions by an individual driven by information within this property do so at their own risk. Always consult a professional before making financial decisions.

Your information will not be sold to any third parties.

Contact Me

The Financial Nanny

  © Blogger templates Inspiration by 2008

Back to TOP