Having a hard time finding the right financial balance between your income and expenditure? Fret not! Get on your feet financially by setting a budget. Budgeting is the ultimate solution to creating that much-needed balance between your earnings and expenditure.
Step 1: Know Your Income & Expenses
Income – How much money do you make in a month?
Expense – Where do you spend your money?
Step 2: Track Your Money
Create a spreadsheet. List down all your expenses – where you spend money, when you spend it and how much you spend.
Step 3: Compare your total expense with your total income
Subtract your total expense from your income. Negative result? Oops! Cut down on your expenditure. You’re spending way beyond your means!
Step 4: Check Your Expenses Again
Were all your expenses necessary? No? Cut down on all unwanted expenses and focus on your needs only.
There you go. You have set yourself a monthly budget sans the unwanted expenditure. Stick to this budget and you’ll be able to make the best of your income.
Tip: Budgets are subject to change. Revise your budget at least once every six months. This will help you plan your finances better.