Article: This is one of the easiest ways to make a budget that you stick to. Simply compute how much you pay each month for your regular bills. Divide that amount by the number of times you get paid each month to determine how much you should deposit in your bill-paying account from each paycheck. After each pay period, make sure to make the deposits in the proper accounts. Certain items, like car registration, taxes, and insurance payments are often billed once or twice a year, instead of being billed each month. Budget for these too. Simply write down the total of your non-regular bills and divide that number by 12 to determine how much to set aside each month. So that you won't be tempted to skimp on irregular expenses, it's best to put this money in the same account as you use for your regular bills. That way, the money is there when you need it. Budget for items that you may not buy monthly, such as clothing, so that you always have some money tucked away when you need new items. This is very important, and most financial experts strongly recommend building emergency savings equal to three to six months of take-home income. As soon as you are caught up on bills, this should be your first savings goal. The amount you need to put in will depend on your needs. For example, if your car insurance policy has a $1,000 deductible, then always keep at least $1,000 in your emergency account just in case you have a car accident.
What is a summary of what this article is about?
Create separate accounts for bills and for discretionary funds. Budget for bills that you don't regularly pay. Keep an emergency savings account in case of disaster.