How To Budget To Prevent Spending Too Much On Living Expenses By DJ Bettencourt

When creating a budget, it’s critical to understand how much money is flowing in and going out. That way, you can figure out where you can cut back on expenses and save some cash for something else—such as a vacation or a new car. Here’s how it’s done:

Make A List Of Your Current Bills And Expenses

The first step to planning your budget is to make a list of all your current bills and expenses. This should include things like rent, utilities, groceries, car payments, and insurance premiums. It should also include student loans and credit card payments if applicable.

Figure Out How Much Money You Have Coming Into Your Bank Account Each Month

Determine the monthly amount of money that you have flowing into your bank account. According to DJ Bettencourt, this encompasses any income from a job or business as well as any other sources of money.

Then add up all the expenses that must be paid by the first of the following month or earlier. This group includes any regular monthly bills that are due on a particular day each month, such as rent or mortgage payments, utilities like electricity and phone bills, food expenses, gas for cars or passes for public transportation, entertainment costs, or dining out with friends.

Add Up All The Costs Of Living In Your Area

Once you’ve determined the average cost of living in your area, it’s time to add up all of the expenses that will be coming out of your bank account.

  • Rent/mortgage: Divide by 12 and add to your monthly allowance. This will give you an indication of how much money you’ll need to set aside each month for housing.
  • Food: Calculate annual grocery and restaurant costs. Divide this number by 12 and add it to your monthly budget to ensure you have enough money after paying rent to buy food without going into debt or starving until payday.
  • Utilities: Try adding up utilities each month and how much electricity usage has increased year over year to see if conservation measures like turning off lights or installing better window insulation can lower bills.

Compare The Total Cost Of Living To Your Income

Comparing your total cost of living to your salary is the best way to make sure you have enough money to support yourself. If you don’t have enough money, spend less. According to DJ Bettencourt, if there is still a difference between your income and the amount needed to maintain your standard of living, you should think about switching jobs or looking for other methods to boost your income.

If things are tight but manageable–if there is some breathing room between what you make and how much it costs–consider putting some additional money aside for emergencies or future expenses such as college tuition, car repairs, or house repairs.


Planning And Knowing Your Money And Expenses Can Prevent Overspending On Living Costs


Controlling overspending on living expenses is feasible if you plan ahead of time and know how much money comes in and goes out. You can’t control what occurs to you, but you can control how you react to it. You can’t alter the past, but you can change your future by learning from your mistakes.

You should create a budget for yourself at least once a month to ensure that your finances are running efficiently. The best way to do this is to keep track of where all of your money goes daily, whether using an app or simply writing down how much each transaction costs.