How do you create a budget

[WATFORD]

To create a budget, follow these steps:

1. Determine your monthly income: Calculate your total monthly income from all sources, including salary, bonuses, and any other sources of income.
2. List your monthly expenses: Make a list of all your monthly expenses, including rent or mortgage payments, utility bills, transportation costs, food, insurance, and entertainment.
3. Categorize your expenses: Group your expenses into categories such as housing, food, transportation, and entertainment.
4. Track your spending: Keep track of your spending for one or two months to get a better understanding of where your money is going.
5. Set budget limits: Decide how much you want to spend in each category and set limits for each.
6. Adjust your budget as needed: Review your budget regularly and make changes as needed to keep it realistic and in line with your goals.
7. Stick to your budget: Try to stick to your budget as closely as possible. When unexpected expenses arise, adjust your budget accordingly.

Creating a budget can help you better manage your finances, save money, and achieve your financial goals.

 

[Shortie]

I always try to stick to a budget myself every month. I know at the moment the income I have will not change much aside from what I earn online which can either be more or less and that does help me to budget well each month. Due to the cost of living and the rising inflation, when I used to be able to budget and know exactly how much I needed, now I have to budget and ensure I have extra just in case something increases in price. It's not difficult to do but it can be frustrating to have to sit and budget more times than I used to. Hopefully one day we will be back to the days when we know exactly how much everything will be and there will not be much of a change.