PENNSYLVANIA, USA — One of the most basic skills of becoming an adult is also one of the most difficult to master: budgeting.
Whether we would like to admit it or not, it's oftentimes very hard to make a budget, let alone stick to it.
In today's Money Smart, FOX43 spoke with Catherine Azeles with Conrad Siegel about the basics of managing your money.
Azeles says the first step to starting a budget is to evaluate how much money is coming in, versus how much money is going out. This includes things like your paycheck, investments, savings, and side hustle, as well as things like alimony, child support, and gifts.
Then, she says, start adding up your bills, and then expenses that change month-to-month like entertainment, food, and more.
Also, Azeles recommends putting your spending into three different "buckets." These are:
- Needs
- Wants
- Fun expenses
These steps will help you evaluate your priorities, and then you can scale back on the things you don't need, she says.
Debt is also a major thing to focus on; it should always be one of your top priorities, according to her.
Azeles also reminds FOX43 viewers that budgets change, and you should always be reevaluating.
To hear more of what Azeles had to say, check out the clip above.