What is Budget? And some tips on budgeting.
In this resent life youth found themselves in dept or not even not been able to stay on a monthly payment due to lack of budgeting,keep reading to have a tip on how to have a successful spending on your monthly income.
What is Budget?
A budget refers to an estimation of revenue and expenses that's made for a specified future period of time.which can be procure by an individual, business men and women and government so as to have a smooth run in a year calendar.
A budget can also be define as a financial plan for a specific period of time that can greatly boost the success of any financial undertaking by setting goals, measuring outcome and planning ahead of loose or gain. Budget can either be:
- Personal budget: this help individual and families to made there income.
- Corporate budget: this help firm to there intake and outake and the values that are level by there product.
Steps in creating budget.
STEP ONE:
Create a budget spreadsheet or use a budgeting app:
Budgeting spreadsheets and tools are great resources for creating a conscious spending plan.
To build a budget spreadsheet, follow these steps:
- Choose your software and template
- Calculate your income
- Categorize your expenses
- Decide how often to update your budget
- Enter your numbers
- Maintain and stick to your budget
Budgeting apps make it easy to set spending goals and track your income and expenses, but many of them charge subscription fees and require you to hand over some of your private data.
STEP TWO:
List and calculate all your (net) income
Your income can either be your weekly wages or monthly salary,pen down how much money you earn on a daily basis so as to maximize your income and minimize your expenses.
STEP THREE:
Track your spending:
Now that you know how money in entering on a daily, weekly or on a monthly basis. The next thing is to to where all this money are going, mean what you are spending them on. This is a strategy to know and most important part of budgeting.
Tracking your spending will make you maximize your expenses on what you need and not what you want.
STEP FOUR:
Fill in your monthly expense:
Here is where you get the work done, since you know where your income is coming from and how is coming and the amount, is best to put a pen down on what you are to the money for and the expenses they are going, e.g.
Expenses
Amount
Transportation
10,000
Food
30000
Data subscription
2000
Urgent expenses
5000
Total
47,000
STEP FIVE
Adjust your spending to stay on budget
Now that you’ve documented your income and spending, you can make any necessary adjustments so that you don’t spend More than budget and have money to put toward your goals. Look toward your “wants” as the first area . If you’ve already adjusted your spending on wants, take a closer look at your spending on monthly payments. On close inspection a “need” may just be a “hard to part with.”
savings can add up to a lot of money. You might be amazed at how much extra money you accumulate by making one little adjustment at a time.
STEP SIX
Set goals that you can track:
After you have set up your budget, you also need to set a goal to chase,this will be helpful in minimizing your spending and having what to hold on to at achievement at the end of the year.
What information do you need to create a budget?
- Income
- Black tax
- Debts
- Savings plans
- Assets/Investments
- Insurance
- Groceries
- Electricity bill
- Entertainment costs
- Eating out
- Transportation
- Travel
