5 Easy Steps to Budgeting – Step 5

In this series of post, I’ve been sharing the process that Jenn and I followed to develop a budget that actually worked! We have developed a monthly spending plan or budget every single month since that first one way back in July of 2003!

Here are the steps that we’ve already discussed.

STEP ONE  Decide to decide 
Until you decide that budgeting is crucial to taking your finances to the next level, you’ll be stuck! Decide to live differently and decide to start winning with your money NOW. 

STEP TWO  Determine the income (take-home pay) you will receive during the NEXT month
Planning ahead allows you to determine if there are any gaps. By being ahead of the game, it provides you an opportunity to avoid “budget-busting” events.

STEP THREE  Enter all of your expenses for NEXT month 
Tell your money where to go!

Whether you make $1,500 per month or $50,000 per month, it is limited. If you spend more than you make, you will erode savings or turn to debt!

STEP FIVE  Follow the budget!
Now you know all the steps. You have a spending plan for next month. Now is the time to live it. YOU told your money where to go now YOU make sure it goes there!

I’ve been able to see people completely break free of debt. I have seen people pay off their mortgages! I have seen marriages restored! I have seen the hopeless become hopeful!

Following a budget is about more than money. It’s about becoming FREE! Not being held by the chains of debt and despair. You will become financially free if you stick to a budget. This is a decision you will not regret.

Maybe you have read this series in a guarded, protected way while wondering, “Will this work for me? I don’t want to get my hopes up. I’ve tried this before.” I say that YOU CAN DO THIS!!! I believe in you! Why? Because I was there! I had an average bank balance of $4.13 and the STRESS was awful! The shame was real. I did not know how to break free.

Planning my spending one month in advance was what broke Jenn and me free! It will work for you too!

Why not pull up a free budgeting tool and get started winning with your money today?

If you get paid monthly or have at least one month of expenses in the bank, use our Monthly Budget Form. If you are living paycheck-to-paycheck, use the Weekly Budget Form.

If you would like to learn more about how to budget, check out my newly revised book, I Was Broke. Now I’m Not. Click HERE to order!   


  1. SASHA TURNER on October 15, 2016 at 5:34 pm

    Should you count your savings account as income or outgo?

  2. Megan Friddle on October 18, 2016 at 11:43 am


    Great question! You should count your savings account as outgo because it is not actual income coming in but money you are saving for the future.

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