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When it comes to our money,
we need a map to help us stay on track. That map
is called a budget, and it can help us reach the
short- and long-term savings goals we have set
for our money. Here's how to make your own budget
so that you can save money each month by not spending
more than you earn.
- First, take a piece of paper and fold it in half
the long way.
- On the right side, write down the money you get
in a month. Write "Monthly Income" at
the top of this column. Under the heading, list
the money you earn by doing jobs and the money
that is given to you as gifts.
- On the left side of your paper, write down your
expenses. Label this Monthly Expenses. On this
side write down all the money you spent during
the month.*
*NOTE: To help you keep track of what you spend
your money on, keep a Spending Diary. A spending
diary is like playing detective with where your
money goes.
- When writing down your expenses don't forget
to pay yourself first by saving every
month. You deserve to keep some of what you earn
every month. Remember that saving is the key to
meeting your goals!
Once you have your budget, compare
your income with your expenses. This is a reality
check. By comparing what you have with what you
spend you can see if you're spending more money
than you make every month. If you are, you need
to spend less. See our Smart
Spender lesson to find out some ways to be
a price detective.
If you spend less than what
you make each month - good job! You can save more
for your goals. Put this extra money in your bank
account.
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