Don’t scare yourself to build a budget.
How to build a budget without fare?
Most of us are scared to build a budget, but why?
Maybe because you think it’s a test. Just see it as an exercise
Graduation is for most of the people scary—the biggest reason is the fear that the bubble you live in is about to pop. You get the feeling that life is about to hit you in the face. The fear factor here is money.
Now the time has come that you have to manage your own income which includes making an overview of your incoming and outgoing money. You have to come out of that bubble.
You actually have to manage that incoming money, which includes tracking the outgoing money. Question “how to build a budget“?
Remember your first job. Probably your were so angry and had such a fear you couldn’t do anything. I mean, I knew that expenses existed but I had the feeling that it was a never ending story. Paying bills for the rent, water, trash, electricity, cable, Internet, car insurance, renter’s insurance, gas, cell phone. I had the feeling I couldn’t survive.
Now you have to take action and build my own budget and it is really important to stay in control of your money. What do do.
You can download a digital finance planner, or making an excel sheet, etc…..there are a lot of tools to help you. So, go for it.
How to build a budget –
- Check out your expenses from last month and then categorize each transaction.
- , Housing, including rent or mortgage
- Utilities
- Car payments/insurance/gas
- Health/medical expenses
- Groceries/restaurant expenses
- Entertainment
- Personal/shopping/clothing
- Children
- Savings
- Credit cards/loans/other fees
- Etc.
- Calculate the total monthly income after taxes and subtract what you spent from month start to month end. Did you overspend? If this is a big red flag—you need a budget. (And, really, you need one whether you overspend or not.)
- Analyze your spending from last month to see what categories are flexible—what can you cut back?
- Set goals and adjust your expenses.
- Write down your expenses when you go away.
- Evaluate your budget every month and do this for the first 3 months.
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