Divide your expenses and organize your bills for every month
In the case that budgeting for expenses seems like a herculean task for you, a great way to get organized is to recognize and isolate your expenses based on the different types of expenses that you have every month. This can be done by broadly separating these expenses in three different categories and creating separate accounts in the bank for each of them.
Account for Fixed Expenses
Fixed expenses refer to those expenses that remain the same every month. This includes payments for mortgage or rent and debt payments. You know what amount these payments would need every month and therefore you can easily shift that amount from your monthly paycheck into this account and forget about it. However, one rule that needs to be strictly adhered to is to never make any kind of personal withdrawals from these accounts under any kind of pretext.
Account for Variable Expenses
Variable expenses refer to those expenses on a monthly basis whose value differs based on your need and spending habits. They may include payments for groceries, utilities, cash withdrawals or entertainment. One rule that you need to follow for this kind of account is to remember that you need to forego any kind of further spending for the month once the amount in this account gets used up.
Account for Irregular Expenses and Savings
This account is specifically designed to take care of any kind of emergency and save money for a rainy day. Siphoning money that remains extra after having put them into the other accounts or money from incentives or refunds on taxes need to be put into this account thereby creating a solid backing in case an emergency rises up.