If you want to lead a financially secure life, then following a budget is the only answer.
See how you can create your budget in 6 simple steps
Set Goals
Write down what you want to achieve in the short & long term.
1
Calculate Net Income
2
This will be very simple if you are a salaried employee. However, if you have a business, your monthly income will be an average of the past three to six months income.
Calculate Expenses
3
Track & categorize your expenses into fixed, variable, and discretionary Expenses
Add Goals Fund to Your Fixed Expenses
4
You won’t be able to meet your goals with whatever is left after all your expenses. So you need to add your goals fund to your fixed expenses.
Compare & Adjust
5
Compare your expenses to your income. See whether the expense number is lower, equal, or more than your income & adjust accordingly.
Implement And Review Regularly
6
Once you implement your budget, you’ll notice patterns over time. These will help you make changes as needed to your budget and figure out what is important to you.
used correctly, a budget doesn't restrict you, it empowers you