16/07/2024
How to Create a Personal Budget Plan
No one eats an elephant by swallowing it whole. (You go one bit at a time) . And no one leaps into budgeting like a pro, you have to take it one step at a time.
No matter how you feel about budgeting right now, no matter what money goals you have, and no matter your income, making a budget imperative. But before you create a budget decide if you are making a budget on paper, with a spreadsheet or an app. If your pick is an app we Recommend Bohikor.
1) Write down your income for the upcoming month.
This includes your take-home pay and any secondary sources of income.
2) List All Your Expenses.
This should include your regular and irregular expenses ( rent, electricity, feeding, loan repayment, internet subscription, etc) Note that adding a miscellaneous category to your budget, especially the first time will be helpful. I equally recommend starting your budget with a spirit of generosity by setting aside money for giving.
3) Subtract Expenses From Income
Ensure that the result you get is equal to Zero. If you are over or under, redo your maths or return to the previous steps and rearrange your plan. Remember, this doesn't mean you have no money left at the end of the month, it simply means that every franc is accounted for and has a 'job' to do.
4) Track Your Transactions
Tracking your transactions means you account for everything that happens with your money all month long. This helps you see if you stayed on budget and also lets you know how much you have left to spend in each category. This gives you a huge sense of control over your money
5) Create Your Budget before the month Begins.
No two months are the same that's why you create a new budget before the month begins.
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