Budgeting was a key component of Group's debt-management strategy. He made a new budget every year, he said:"I put it in an Excel spreadsheet. I had my checking account balance at the top and then I estimated my expenses — what I was expecting to spend on my credit card, rent, and student loans — and my income."
"I wanted to guard against overdrawing from my checking account," he said."If you're overspending, you're going to see that balance getting lower and lower." Also note that you can include multiple income streams if you have two jobs or earn a commission, for example.Again, Group has it set up in two columns:"estimated monthly expenses" and"actual monthly expenses." Like with the income section, you'll have to go back each month and change the actuals if they don't line up with the estimates.Column A includes expenses that could come up in any given month, from rent and internet to dining out and Amazon purchases.