8 Steps to Creating a Personal Budget

Designing a budget you can stick to doesn’t have to be a painful process.

8 Steps to Creating a Personal Budget

7. Try adding on instead of only cutting back. Following a budget typically means making cuts in less essential areas or eliminating some costs completely. However, if reducing the amount of money going out isn't doing enough, look for ways to increase the money coming in. "Take a part-time job or sell something that is just sitting in your closet taking up space," Beck says. "People tend to think about just the one side of the equation when working to keep their budget on track, but there's another side that you can influence too, whether it's for a temporary or permanent basis."

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 8. Don't set yourself up for failure. Making sacrifices is part of managing expenses, but if you set restrictions too high and too soon, you will be less likely to follow your budget over the long term. "If you enjoy a latte every day, don't go from zero to 60 in terms of cutting back. Do it gradually," Wong says. "Nobody wants to stick to a budget that cuts out everything fun in their life. If you keep failing at your budget, you are going to be discouraged and you're not going to want to do it anymore."