Wealth Wednesday: Making and Sticking to a Budget

Seven ways to create a household budget that sticks.

Budgeting 101 - Creating and sticking to a household budget is no easy task. Most people go into the process with good intentions to get a handle on their income and expenses, improve their savings habits, and/or save for retirement. Within a few months (or weeks, in some cases) those good intentions derail and you're back to the “paycheck-to-paycheck” mentality. If you’ve had enough of this rollercoaster ride, use these seven quick tips for creating and sticking to a budget. — Bridget McCrea

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Budgeting 101 - Creating and sticking to a household budget is no easy task. Most people go into the process with good intentions to get a handle on their income and expenses, improve their savings habits, and/or save for retirement. Within a few months (or weeks, in some cases) those good intentions derail and you're back to the “paycheck-to-paycheck” mentality. If you’ve had enough of this rollercoaster ride, use these seven quick tips for creating and sticking to a budget. — Bridget McCrea

Gather the Necessary Information - Collect your bank statements, investment account balances, credit card balances, recurring bills and all other income and expense data. Go online and retrieve these documents from your bank or credit card company if you don’t have the records at your fingertips. (Photo: Rob Lewine/Getty Images)

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Gather the Necessary Information - Collect your bank statements, investment account balances, credit card balances, recurring bills and all other income and expense data. Go online and retrieve these documents from your bank or credit card company if you don’t have the records at your fingertips. (Photo: Rob Lewine/Getty Images)

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Review the Data and Come Up With a Monthly Number - Look at everything that’s in front of you to come up with a monthly expense total. Be sure to factor in any quarterly or annual payments by dividing appropriately (an annual property tax bill of $3,600 equates to $300 per month, for example) and accounting for those expenses as well. (Photo: Gregor Schuster/Getty Images)

Raise It! - While lawmakers debate the pros and cons of raising the minimum wage, there's no doubt in American voters' minds about what to do. The Quinnipiac poll found that 71 percent support raising it, including 52 percent of Republicans. (Photo: Steve Cole/Getty Images)

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Assess Your Income - Review all sources of income, including your paycheck, child support and alimony payments, self-employment income and any other sources of cash.  (Photo: Steve Cole/Getty Images)

Get It in Writing - Don’t budget in your head. Use a simple Excel spreadsheet, a Word document or a mobile application like My Budget or MoneyWise to record and track all of your budget information.  (Photo: Courtesy of MoneyWise)

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Get It in Writing - Don’t budget in your head. Use a simple Excel spreadsheet, a Word document or a mobile application like My Budget or MoneyWise to record and track all of your budget information.  (Photo: Courtesy of MoneyWise)

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Where Else Does Your Money Go? - How much money do you spend on haircuts, groceries, entertainment, auto repair and restaurant meals every month? The answer can get tricky and it can also be extremely telling when it comes down to putting your budget on paper. Be honest in your assessment and add these additional expenses to your spreadsheet. (Photo: Andersen Ross/GettyImages)

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Compare Inflow to Outflow - If you are spending less than you make, then start saving. Contribute to your retirement account (or allocate more for retirement), pay down your debt and make other smart financial moves. If you’re coming up short every month, then now is the time to assess your income and expenses and find ways to either boost the former, reduce the latter or do a little of both. Look at where you’re overspending and cut back on expenses like restaurant meals, visits to the salon and entertainment.  (Photo: Bruce Laurance/Getty Images)

Create a Budget - Not only will it make you more responsible with your money, but it will let you see where you can cut back so you can save even more. It will also teach you the skills you’ll need to live well on your fixed retirement income. Try You Need a Budget’s simple tool, and make your budget part of a digital financial organization system that will make all aspects of your money life easier. (Photo: JGI/Jamie Grill/Getty Images)

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Review Your Budget Frequently - Putting numbers on paper and identifying gaps are pretty easy exercises. Sticking to a monthly budget and adhering to cutbacks is a completely different story. Get in the habit of reviewing your budget monthly and adjusting it accordingly. Look at where you are and where you want to be and use your budget as a roadmap for achieving your financial goals. (Photo: Getty Images)