In order to achieve a money smart budget, you need to first develop a generic budget and fit it to your needs. This is a process which takes time to evolve, but you will benefit from the time you put into it. A money smart budget allows you the freedom to save and spend your money where you want to, without worry that it is not going to be there when you need it. With a money smart budget, you'll know where your money is.

Creating a Generic Basic Monthly Budget

Calculate your average monthly gross pay by adding up all of the money you receive in a month. This is all money that comes in including a average of tips, alimony, etc.

Calculate your expenses, for help determining your monthly expenses, click here. Use this basic budget worksheet to help figure out your generic budget. Save all of your receipts for the next month and categorize each.

Fine-tuning Your Monthly Budget

After following the basic monthly budget for one month, you have an idea of how much you actually spend and where your money is going. The second month, fine-tune your budget. Get rid of categories you won't need. Add in your yearly expenses broken down into monthly bits. Make this month's budget an actual picture of what you will be spending and where the money goes.

Continue to perfect your monthly budget for a few months. Allocate where you want your money to go and make it happen. While you will not be able to foresee every surprise, be as accurate as possible.

Building the Money Smart Budget

Now it's time to adjust your budget with savings techniques, seeing where you can tighten your belt and where you should invest or pay down debt. You have a good feel for where your money traps are and where your money is going, so you will be able to allocate it appropriately and give your budget the 'money smart' advantage.

Don't Stop Now!

A monthly budget isn't something you build and then you're done - no way! Now that you have the tool already for you, keep using it every month. Create a financial goal and see how fast you can make it happen by using your monthly budget.