In this series of posts, I am sharing the process that Jenn and I followed to develop a budget that actually worked! We have developed a monthly spending plan (budget) every single month since that first one way back in July of 2003!

Here are the steps that have already been shared.

STEP ONE Understand that budgeting is nothing more than "telling your money where to go"

Telling your money where to go is so much fun! Especially when you tell it to take you on vacation or go golfing!

STEP TWO Determine the income (take-home pay) you will receive during the NEXT month.

Planning ahead allows you to determine if there are any gaps. By being ahead of the game, it provides you an opportunity to avoid "budget-busting" events.

STEP THREE Enter all of your expenses for the NEXT month.

Tell your money where to go!

STEP FOUR INCOME - OUTGO = EXACTLY ZERO

Whether you make $1,000 per month or $40,000 per month, it is limited. If you spend more than you make, you will erode savings or turn to debt!

STEP FIVE Follow the budget!

You have followed all of the steps. You now have a spending plan for the next month. It is time to live by it! After all, it was YOU who told your money where to go! Why wouldn't you follow YOUR plan?

As I have helped others develop their own spending plans, I have seen people completely break free of debt. I have seen people pay off their mortgages! I have seen marriages restored! I have seen the hopeless become hopeful!

That is what your budget will allow you to do! Develop a spending plan every single month BEFORE the month and the money arrives and then FOLLOW it! You will never regret this decision.

Maybe you have read this series in a guarded, protected way while wondering "I wonder if this will work for me? I don't want to get my hopes up. I've tried this before." I say that YOU CAN DO THIS!!! I believe in you! Why? BECAUSE I WAS THERE!!! I had an average bank balance of $4.13 and the STRESS was awful! The shame was real. I did not know how to break free.

Planning my spending one month in advance was what broke Jenn and me free! It will work for you too!

Why not pull up a free budgeting tool and get started winning with your money today?

If you have enough money in the bank to pay all of your bills at the start of the month, use the Monthly Budget Form (Excel) in the