Having and following a personal budget is an important part of maintaining healthy personal finances. Having a personal budget gives you insight into where your money goes and can help you to plan your expenses and get out of debt. With better financial planning you can allocate your money more effectively.

One of the most difficult tasks of setting up a personal budget is knowing how much money to allocate to each budget category. How do you determine what is an appropriate amount to allocate to housing, entertainment, or savings? Even if you have been tracking how you spend your money it is difficult to know if you are over-spending in one category or under-spending in another.

In order to help with this problem I have created an online personal budget allocation tool. With this tool you can enter your income then see recommendations on how much money you should allocate to each of your budget categories.

With this information you can then get started on creating and following your personal budget. After tracking your spending against the recommended budget amounts you can make adjustments and fine tune your budget.

Once you know how to budget, staying in control of your personal finances is easy.