You will want to get your expenses as low as possible so that you have more money left for the important stuff. Your calendar will help you to work out the things that you will need to pay for from month to months, such as birthdays and various occasions. With categories such as groceries and eating out, this can be guessed wildly wrong in terms of how much is spent, so tracking these expenses will help you to make a realistic budget. If you want to go camping but stay within budget or have a fun staycation with the family, then you need to take saving for it into account ahead of time. This is an important step- if there are things you want to save for, you need to compare to what you’ve spent before or do an estimate. When it comes to your variable expenses, you can again look back at previous bank statements to see how much you spent in previous months. There will be other things that you will be paying for, so it’s best to check your bank statements and look at previous months. You can look at your bank account to see the things that you need to pay for that month, which will probably be things like: What this means, is that you think of saving money as a non-negotiable like a bill, and move money straight over to savings before you are tempted to spend it. Once you get paid, make sure that you pay yourself first. This is one of the biggest budgeting challenges that gets people stuck. What a lot of us tend to do, is to pay our bills, spend money on the things that are taking our fancy, and then try and save any money that is left after that – which is not a lot. Only budget using money that is guaranteed. If you aren’t sure about whether you will be receiving certain money or not, I would suggest leaving that out of your budget, in case you don’t get it. Make sure that you put down the exact money that you will have coming into your account, but if you aren’t 100% sure, it’s worth checking your bank to see. You’ll most likely have incoming money for things like: Look at your bank statement and see the exact amount that you have coming in each month. Remember – a budget is a tool that will help you achieve your goals, and stop you from wasting your hard-earned money on things that you don’t even really want or need.Ģ) Write Down Your Monthly Take-Home Income You can, of course, use most of the information from the previous month, but there will be things that vary from month to month, depending on what you have planned. You may get an extra paycheck one month out of the year, you may have more things to pay for in one month than the next, etc.īudgeting is fun because you can see the progress that you are making towards your goals.Īt the end of every month, sit down and work out a new budget. Yes, every month – because every month is different. 1) Make the Commitment to Stick to a Monthly BudgetĮvery month, you will have to create a new budget. Now let’s get into each one of these steps a little deeper. Write Down Your Monthly Take-Home Income.Make the Commitment to Stick to a Monthly Budget.How to Budget: 6 Simple Steps Anyone Can Follow With budgeting, you will be able to see the flow of money, and redirect the flow towards better things, to make sure that you are able to work towards your goals. For most people who don’t have a budget, the expenses are what can take you by surprise when you add up how much is going out of your account each month. Then you will write down all of your expenses, and this is where it will get interesting. You will make a list of all of the incoming money that you have such as your weekly or bi-weekly paychecks and side hustle income. This way you’re taking all your finances- your income and your payments- into your hands! It’s the best way to achieve independent wealth and take care of yourself financially.Ī budget will show you exactly how much you have going in and out, and make sure that you are living within your means. Every month you will get money coming in, and you will have money going out. How to Budget When You're Terrible With Money?Ī monthly budget is a monthly plan for your money.Will a Monthly Budget Really Work For Me?.2) Write Down Your Monthly Take-Home Income.1) Make the Commitment to Stick to a Monthly Budget.How to Budget: 6 Simple Steps Anyone Can Follow.
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