moonchild
VIP Contributor
Almost no one wants to spend their time crunching numbers and figuring out where every of their penny goes? but if you want to live a financially free life, creating a budget is a must, without accounting how you spend money, how can you get rich, now let's dive into the nitty-gritty of how to create a monthly budget that works
figure out your monthly income. this might seem like a no-brainer, but you'd be surprised how many people don't know exactly how much money they bring in each month, because many things are involved, they took a loan from a bank, they have automatic savings and all of that, once you've got that number, it's time to start tracking your expenses. And yes, that means writing down every single thing you spend money on. trust me, it's worth it.
Then you will have to figure out where you can cut back. maybe you're spending way too much on buying clothes (guilty as charged), or maybe you're paying for subscriptions you don't even use (Netflix). whatever it is, identify those areas and start making changes. And don't worry, you don't have to cut out all the fun stuff – just be mindful of how much you're spending.
Create categories for your expenses. this will make it easier to see where your money is going and where you need to make adjustments. for example, you could have categories like "bills" "transport" and "food." and don't forget to include savings as a category – it's important to pay yourself first, and emergency account can never go out of style, stick to your budget! This is where a lot of people fall off the wagon. It's easy to make a budget, but it's harder to stick to it. One thing that helps is setting up automatic transfers to my savings account – that way, you don't even have to think about it.
figure out your monthly income. this might seem like a no-brainer, but you'd be surprised how many people don't know exactly how much money they bring in each month, because many things are involved, they took a loan from a bank, they have automatic savings and all of that, once you've got that number, it's time to start tracking your expenses. And yes, that means writing down every single thing you spend money on. trust me, it's worth it.
Then you will have to figure out where you can cut back. maybe you're spending way too much on buying clothes (guilty as charged), or maybe you're paying for subscriptions you don't even use (Netflix). whatever it is, identify those areas and start making changes. And don't worry, you don't have to cut out all the fun stuff – just be mindful of how much you're spending.
Create categories for your expenses. this will make it easier to see where your money is going and where you need to make adjustments. for example, you could have categories like "bills" "transport" and "food." and don't forget to include savings as a category – it's important to pay yourself first, and emergency account can never go out of style, stick to your budget! This is where a lot of people fall off the wagon. It's easy to make a budget, but it's harder to stick to it. One thing that helps is setting up automatic transfers to my savings account – that way, you don't even have to think about it.
