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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!

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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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.