Next, its time to plan those expenses that are not necessities.These are the necessities of life that you cannot live without and includes expenses for Rental, Mortgage, Childcare, Student loans, Gas, Electricity, Auto loans, and insurance, etc. Include the income from all jobs (if more than one), monthly investment income or dividends, income from side gigs, tuition, music lessons, bar-tending, etc. This should include every source of income (regular or irregular) you earn in a given month. So, this will lay the foundation for your budget process.Ĭreate a detailed template where you can identify all sources of your household income, list all monthly expenses, and ultimately determine your savings. This allows you to promptly make any changes and adjust your budget before the month-end.Ī budget template is something that helps you track your spending and gives you a monthly snapshot of your income, expense, and savings. So, a proactive approach would be to track daily expenses.
Well, that’s too late as you no longer have any control over the budget once the month is over. Most of the people wait until month end to record expenses and see how they performed vs. In order for your money and budget to work for you, it is essential to track daily expenses. How disheartening would it be if you initially budgeted for visiting your parents but realized that you’ve blown through your budget and don’t have money to visit them?
How would you feel if you had to pass on buying that coffee table that you’ve been eyeing for months… once again? So, no matter how much you stress about your budget not working for you, it just won’t help!
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