Recently I’ve been thinking a lot about how to budget my money better without having to go see a financial planner. I’ve come across a basic way to budget your money. It’s so simple really anyone could do it, and I suggest you do it ASAP. You may think that you don’t need a budget, and you just know how much you are and should be spending on things, but even if you are close to spot on you don’t truly know unless you are keeping track of things. You need to know what you have coming in, going out, and set aside for the future.
Making your budget:
Step 1: Income – Your income can include an allowance from your parents, income from your job, or just money you pick up every now and then from odd jobs.
Step 2: Expenses – Your expenses includes your rent, bill, groceries, the necessary things in life.
Step 3: Extras – These are the unnecessary spending things that you know you’re going to spend but you also know you don’t NEED it. Be decisive!
Step 4: Distribute your income throughout your expenses, money that’s left over is what you have to spend on your extras.
Note: Savings – Saving your money is VERY important, you should be putting away money every month, big or small just make sure it’s something!
So there you have it, your basic budget. As you get older and your income and expenses increase you’ll need to modify your budget, that’s just the natural process of life. But this is a great way to get started and keep track of your money.
Go forth, my loves, and take control of your finances!