In this blog, we are going to tell you how to make your budget? As you all know running a family is not easy and sometimes you expend more than you limit, this blog will help you create your budget.
Making a budget is a boring task but after this blog, it will be not boring because we will tell you the soft spots to save your money. The 6 steps to create your budget:
1) Assess your financial resources:
In the first step, you have to calculate how much you are earning in one month. This not only includes your monthly salary but also your side incomes like your investments, pension and money from other resources. Calculate every single income of yours.
2) Calculate your expenses:
Once you have calculated your monthly income it’s time to calculate your expenses by seeing your financial records, bills etc. We suggest you keep a separate diary for calculating your budget, expenses, income.
Make sure that you have separated your fixed expenses like your insurance, mortgage, car payments etc from your variable expenses like your food, grocery items, gifts, clothes, entertainment etc.
Once you have noted down your expenses and income you can take certain steps to save your money.
3) Set goals:
Once you have tracked down your income and expenses, now you can freely set your goals it can be long term goals like buying a house or car, saving your retirement or it can be short term like funding for your vacation, renovations etc.
4) Create your plan:
Once you have figured how much money is coming in and going out and then you can make a plan according to your circumstances and financial conditions.
Create your plan wisely take time to think because it is a task that needs to be done carefully.
5) Pay yourself first:
The meaning of pay yourself first is to just set aside a certain amount of money into your savings account that you will not touch. It will be only for unexpected but important expenses like taxes, hospital bills and car maintenance.
6)Track your progress:
At the end of each month, you should re-evaluate your budget and compare your expenses, income etc. They will be not the same every month so always stay flexible. Your budget is only a guideline that helps you to control your spending habits.
So these are the steps by which you can control your budget.