MONITOR YOUR MONTHLY BUDGET

  

 

 

 

First of every month is a time to check or revise our monthly budget and use the money accordingly.

A family budget is a game plan for your family's money. Your plan identifies where and how your money comes and goes by focusing on income and expenses. Importantly, it also reflects your family's goals and values by how you spend and save.

 Before creating a monthly budget, track your spending for a month, noting necessary expenses, unnecessary expenses and where there's room for savings. You'll calculate your expenses against your available income, with the goal of spending less than you earn.

 Financial experts recommend the 50/30/20 system, which splits your income across three major categories: 50% goes to necessities, 30% to wants and 20% to savings and debt repayment.

  Couples that budget together, stay together. Start by deciding on your financial goals, both individually and as a duo. Identify your sources of income, and jot down your personal and joint expenses. Next up, and this is the toughest part, decide how you will split these expenses.

The following steps can help you create a budget.

1.       Calculate your earnings.

2.       Pay your bills on time and track your expenses.

3.       Set financial goals.

       4.  Review your progress.

 Make budget a mandatory monthly work as it is essential for making use of the money effectively. A budget can often help build financial independence and freedom. A budget can also set you on the right path to achieving your financial goals, spending within your means, saving for retirement, building an emergency fund, and analyzing your spending habits.

Do you have any tip for an effective budget? Do share it in the comments