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How to make a budget?
What's the best way to go about making a budget? #budgets #budgeting #finance
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Jeff’s Answer
Great question! The first thing to understand is that the budgeting process varies for every person and every circumstance, so don't feel like you have to maintain the same structure for your entire life! Here is how I usually budget:
1. Determine the time frame for which you are budgeting.
2. Establish goals - How much must I save for a big purchase? How should I split my savings, spending, etc.?
3. Earn money!!! You can't budget if you don't have money.
4. Stick to your plan. It's difficult sometimes, but the only way to have a successful budget is if you stick to the plan (with some exceptions when necessary).
Hope this helps!
1. Determine the time frame for which you are budgeting.
2. Establish goals - How much must I save for a big purchase? How should I split my savings, spending, etc.?
3. Earn money!!! You can't budget if you don't have money.
4. Stick to your plan. It's difficult sometimes, but the only way to have a successful budget is if you stick to the plan (with some exceptions when necessary).
Hope this helps!
There are a number of apps that you can use as a starting point which is good if you've never made a budget before. I use an app called 'Mint'. It will give you an idea of the various categories you can use to classify your spending. You can either set budgets up to be month to month, or rolling (i.e. if you don't spend it one month it will roll over to the next month) which allows you to plan for big purchases. You can link it to your credit and debit cards and it'll automatically track your spending and give you an overall view of you financial position at a point in time and for the month.
Lisa Fewster
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Emily’s Answer
I really like this question! Budgets will change over time and throughout your career. What I have found successful is thinking about what % of your income you want to spend in each category. For example, are you someone that like to go out to eat or socialize with friends frequently? Your budget for food and entertainment may be higher. Do you enjoy travelling? You may need a certain portion of your budget reserved for savings to travel. Another tip I give a lot of people is to start with savings. Each time you earn money, immediately put the savings portion away (pay yourself first!). Then you know what you have left over to spend. Keep track of your spending for a few months so you can see where you tend to go over and make appropriate adjustments.
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Derek’s Answer
Hi Kisan,
A great way to start budgeting your money is, always keep track of what you earn and what you spend. Give yourself allowances for what money can be spent and what should be saved. You have to know your spending habits so you can determine ways to save and maybe make some cuts. Regardless of how much you may earn it's always a good idea to know how it's being spent, bills, fun, food, etc..
There are many apps out there that will help you in keeping track of where you are spending your money and where you can possibly save. Or even just writing down your expenses on a weekly basis to give you a better idea.