Budgeting Expenses

Creating a Budget

After we have a history of expenses, what should we do with this information?

At this point, you want to take the average of each group of your expenses, and put them in each of the categories. Add up each monthly expense, like your electric bills, and divide it by the number of months that you are using (6 or 12), and that is the average. Use this number for your budget. In the case of an expense that is fixed, like a rent check or mortgage payment, just use that number as your monthly budget number for that category.


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