Creating a budget is the first step to taking control of your money.
When you make a first budget you are started to arrange your personal finance, you’ll see the areas in which you can cut costs mainly unwanted expenses. You’ll also find how much you can save each month for your future goals.
Make a new budget for each month is your main priority. Budget makes control of spending. If you want to succeed with money, you’ve got to do the details. Every month. So let’s get started.
On one side of the page, list all your income sources for the month.
- Income from a small business
- Side jobs
- Freelance work
- Rental income, etc.
Calculate every single expense you have each month. Rent, food,Home loan,Car loan, cable, phones and everything in between. Your expenses change from one month to the next, which is why you make a new expense plan each month. Insurance budget might increase in the months where you have to renew the medical insurance. Focus on one month at a time.
Your first budget will be ZERO BUDGET
The point of a zero-based budget is to make income minus the expenses equal zero. If you calculate all your expenses during the month and have Rs.2500/- left over, you aren’t done with the budget yet. You must tell that Rs.2500/- where to go. If you don’t, you lose the chance to make it work for you in the areas of getting out of debt, saving for an emergency fund, investing, paying off the house, or growing wealth. Understand every Rupees where to go.
Practice gives PERFECTION
Budgeting is a process. The first month, you will probably feel lost and the budget may seem like it doesn’t work. Don’t give up.
The second month it will work better, but there will still be problems. Again, give yourself time to learn the process and don’t be discouraged. You are further along than you were before, so focus on how much you’ve learned—because quite frankly, you have started to understand the goals of budgeting, Budget for the Success.
By the third month, you will probably understand the money where is going and you will start to identify the unwanted expenses.
By the fourth month your budgeting will start to work out. You know where the money is going exactly. A Budget is showing your money where it should go instead of wondering where it went.
What You Need:
- Your salary statement or tax returns detailing your income
- Credit and debit card statements
- A List of Expenses
Start Early for Next Month budget
Prepare your budget a couple of days before the month begins.If you are preparing for June 2016 Budget, start by 23rd May 2016, this will definitely bring you control of your finance.