In this article Sharon K Couzens de Hinojosa, the creator and writer for TEFL Tips discusses creating a budget.

If you’re like most people, thinking about money gives you a headache. However, if you make a budget and stick to do, you’ll have less to worry about. Before you start to figure out how much you need for everything, you’ll have to think of your expenses. What do you spend money on? Everyone has rent and food, but think about everything else, even the little things like medicines or cell phone bills.

Once you have your list of what you spend money on, start allocating how much money you need for each item. You should also have a savings section on your budget. Cut down on those unnecessary items, such as coffee at the coffee shop or clothes. I suggest creating an “extra” item on your budget. All the extra things, like shopping or nights out on the town fall into this section. Don’t allocate a lot of money to this section, put in what you need for the month, but don’t over do it, remember, these things are extras.

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Look over your budget and see where you can cut back. Rather than buying lunch every day, why not try to bring your lunch three times a week? You can save this month in your savings account, or put it towards paying off your credit cards, or paying for a large purchase, like a car. Every little bit helps. If you can save 15 dollars a week, that’s 780 a year.

Creating a budget is the easy part, but actually sticking to it is the hard part. When you go out, whether it’s to work or out shopping, only take the money that you need. If you’re just going to work, you probably don’t need money, unless you take public transport or are buying your lunch. Just bring exactly how much you need. And leave your credit cards and check book at home. If you don’t have any extra money with you, then you can’t spend it.

One thing that’s helpful is separating your money once you get paid. WE use envelopes, one for rent, another for bills, such as water, phone, etc. Paying with cash is probably the best thing to do, that why you see your hard earned money going to someone else. However, if you can’t pay everything with cash, pay as much as you can with cash. Create an envelope for groceries, lunch, extra, etc. When you see how much you have to spend for the month, you’ll be more careful with your money.

Although it’s hard at first, it eventually gets easier and you’ll find you have money left over at the end of the money. You can save it for a rainy day or treat yourself to something nice, after all you deserve it.

About the author

Sharon K Couzens de Hinojosa is the creator and writer for TEFL Tips, The LA Job List, and The Ultimate Peru List. She enjoys answering people’s questions about TEFLing and Peru.