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5 Tips for Setting Up Your First Budget


Setting up a budget for the first time can be daunting, but it isn't impossible.
Setting up a budget for the first time can be daunting, but it isn't impossible.
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Starting to manage your own finances can be a daunting task. It takes a discipline that comes easier to some people than others, but it's necessary for anyone with a limited income. It's especially difficult for young adults who love to spend and have active social lives. When you're finally on your own after getting out of school, starting your first real job can feel exhilarating -- until you're faced with utility bills, car insurance payments and rent. It's now time for your first budget.

Making a budget consists of few common-sense steps: figuring out your monthly income and your monthly expenses, comparing the two, determining your financial goals, and, finally, adjusting your expenses to meet your goals. Although some people may choose to adjust their income (by taking on another job or working overtime) it's usually easier to cut down on expenses to meet your goals.

Of course, it's easier said than done. Budgeting is a painful process. But with some tips, we hope to make it a little easier.