How To Balance Your Income And Expenditure

By Sanesh Mathew | July 9, 2016

How to balance your income and expenditure

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

Know your income and expenses

Income – How much money do you make in a month?

Expense – Where do you spend your money?

Step 2: Track Your Money

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

Compare expense with 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

Check expenses

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.

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Category: Financial Planning Managing funds

About Sanesh Mathew

A talkative sleepyhead, Sanesh, enjoys watching horror movies, listening to music, reading all things related to personal finance and wandering aimlessly (walking meditation, he calls it!). He refers to himself as a 'simple human being with a rather chaotic mind'.

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