First an indvidual needs to determine want their needs and wants are, such as needs would be: house payment/rent, utilities, vehicle or transportation, food, and child care. Wants would be anything that you could live without if you needed too. Such as: telephone (landline) as long as you have a cell phone, internet (because you can go to the library), limit entertainment, and the big one eating out. The next step is to put your needs in a list that would show the most important at the top.
A suggestion for entertainment is to take an envelope write the word entertainment on it. This will be where you place what you have budgeted for entertainment. Whether it is $20 a week or $50. The main thing for this envelope is to keep putting in the amount you budget, then when you want to go out to eat or a movie you use the money in the envelope. Remembering that when the envelope is empty, you have to replenise it again before you may enjoy entertainment again. This includes stopping at the Drive-thru at McDonalds.
When making your budget you can use a spreadsheet. This way you can have a column for actual and budgeted amount. Then you are able to compare the differences.
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