Setting up a budget in MS Money is ridiculously easy, especially if you have been categorizing your expenses and income from the beginning. Before beginning, I would suggest having some basic information available such as income and what expense categories you will be using.

First, navigate to the proper area by selecting the ‘Budget’ tab on the toolbar. Then it will ask you to choose what kind of budget you would like to create. Your choices are a basic essentials budget or one that includes a saving plan for retirement, college, etc. I chose the basic option.

Next, it will ask you to enter your income. You can add as many as you need if you are a two income family, work 2 jobs, etc. It will tally as you go on the right. We are a one income family so I deleted the other two categories.

Then, you will be asked to select the categories you want to include in your budget. If you have already been using the program, it will show you your categories with the most used already selected. You can also create new categories at this time. I decided to create some new categories now that I am watching our spending more closely. For example, instead of a blanket category called ‘Utilities,’ I broke it down into ‘Gas’ and ‘Electric’ to better track savings opportunities.

Next you’ll be asked to enter in your expenses. Again, if you have already been using the program there will be ‘Spending Averages’ in the second column. It automatically entered my amounts so I have cut that block out. Can’t have y’all knowing too much about me, now can I? These amounts are based on your last 30 days of expenses in that category so be careful using that amount to budget with if you’ve had unusual expenses. Also, if you made new categories in the setup step there will be a $0.00 spending average.

Then, you’ll be asked to select your spending tracker categories. These are the categories that you want to watch closely and the ones that will display on your Budget ‘home’ page. I’m going to be pretty intense about this so I checked them all because I want the at-a-glance advantage.

Finally, you will be shown your budget summary. You can change the time period you are viewing with a drop down menu, which is helpful when comparing how you are doing this month vs last month, or this time last year. It will show you actual vs budget amounts and amounts remaining in your budget. If you are also tracking your bills, which I am, it will show you how many bills you have left to pay in the month and how much that adds up to. Your spending tracker is to the right and shows the breakdown of the categories you selected to track. It will tell you how much you have spent and how much is allowed in that category. If you have exceeded your budget you are rewarded with a red bar and exclamation point. Which stands out, by the way.

*TIP ~ When tracking a purchase that falls into more than one category, use the ‘Split’ button when entering the transaction into your register. Let’s say that I go to the gas station, fill up and buy a donut totaling $21.00. I will enter in the basic info such as date, place and total amount. Then I would hit the ’split’ button and enter each total separately. Category one would be ‘Gasoline’ for the amount of $20.00 and category 2 would be ‘Dining Out’ for the amount of $1.00. You have tracked the total amount for reconciliation and you have also tracked each category for your budget. Easy peasy. Yes, there will be more complex items such as food and household from Target with tax and whatnot. Don’t get lazy now, budgeting is organization and a bit of work, I don’t care what anyone tells you.

The key with me is to always remember that I can adjust at any time. If something isn’t working, don’t abandon the whole project, just tweak the area that is not working. With that in mind, and after consideration, I have decided to try combining a couple of budgeting methods. I have decided that all of our spending will be done with cash, with the exception of our monthly bills such as car payments, utilities and etc. I withdrew an amount from the ATM that covered two weeks worth of those expenses that we would pay cash for, such as blow money, gas and such. Since I already had a half tank of gas, I only used half of what I had allotted for the next two weeks. (I don’t drive a lot, especially this time of year.) Rather than carry that extra money around that I may spend, I made an envelope and put the remaining money in it and stored it. It is readily available should I need more gas and I will not have blown my budget. Since it is for gas and gas only, I tracked the expense using the ’split’ option. I allotted a certain amount so that amount is entered in. Doesn’t affect my bookkeeping because I still took out that amount. If I don’t use it by two weeks, it will go into savings.

When setting this up, remember that your budget will begin calculating by the month immediately. I am currently showing that I am over budget in almost every single category because of overspending prior to setting up the budget. This is okay. It will even out when you have 30 days of budgeting behind you and you will get accurate, up to the minute details.