Reader Question: How To Set Up a Budget

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Reader Lori has a question about setting up a budget.


I am curious to know what system your readers use for budgeting (excel, online tool, pen/paper, etc.).  Most of us on your site are trying to save money and spend less, so I want to know how they do it?  I’ve heard things about Mint, but I don’t personally know anyone who uses it, but I know there are a variety of tools out there…I just need some guidance!

I am very interested what what you guys have to say but I would like to add my two cents to this because I believe that having a budget is one of the most important things you need to do to gain control of your finances.  Whether  you make $25,000 a year or $250,000 a year, having a budget is an absolute must.  You really need to know where ever penny is going.

Creating a yearly, detailed budget, and sticking to it, has been life changing to us.    We have taken control of our finances in a way that we never have before.  And, in the process, have been amazed at where our money had previously been spent.

You can check out my recommendations for Setting up a Budget and Sticking to It on a previous post I wrote.  And, if you are, or are going to be, a college graduate, you might want to check out the Financial Tips for College Graduates – Setting Up Budgets & More.

But, enough of my two cents, I’m sure Lori, would like to hear your two cents as well.  So, what tips do you have for Lori on setting up a budget?

If you have a questions you would like to ask the LRWC readers, you can send it to [email protected]  Put, “Reader Questions” in the subject line.