Paying for essentials5 of 9When you get paid, pay your essential bills such as rent or mortgage and utilities, then take out and allocate what seems like an adequate amount of cash for each budget item, starting with your highest priorities, says Burton.For more variable costs such as groceries, figure out how much you actually need to spend by carrying a notebook with you to record purchases or using a combination of paying by debit card and tracking your purchases on a website like Mint.com, says Kirchenbauer.Burton suggests using an envelope system where you stash money in labeled envelopes for each type of expense. But keep in mind, you'll probably need to make adjustments in the amount you put in each envelope as time goes by, especially if you've never worked from a budget, says Burton. Related Articles:Why debt management?5 ways to cut debt now2010 Frugal Living GuideSave money on groceriesRelated Links:Ways to dump debt in 2010Debt pay-down calculatorBuilding your emergency fund4 dumb financial moves advertisement
When you get paid, pay your essential bills such as rent or mortgage and utilities, then take out and allocate what seems like an adequate amount of cash for each budget item, starting with your highest priorities, says Burton.
For more variable costs such as groceries, figure out how much you actually need to spend by carrying a notebook with you to record purchases or using a combination of paying by debit card and tracking your purchases on a website like Mint.com, says Kirchenbauer.
Burton suggests using an envelope system where you stash money in labeled envelopes for each type of expense. But keep in mind, you'll probably need to make adjustments in the amount you put in each envelope as time goes by, especially if you've never worked from a budget, says Burton.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.