Hello World! Welcome Friends! What’s your resolution for this year? If you want to gain control of your finances and start saving more money, then you’re in the right place. Lots of people feel like they don’t have the financial capacity to save any money. As a result, they never put any money away, which isn’t a very sensible thing to do.
A lot of the time, you can find some money to save somewhere. It’s all about figuring out a budget for every month. With a budget, you can plan your expenses and realize how much money you can stash away for a rainy day. So, whether you’re looking to buy a new family car – or just saving up for a holiday – here’s how you can set a monthly budget for the upcoming year.
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Calculate your Monthly Income
The first step is looking at how much money you make every month. Most of you can do this by looking at your monthly wage packet. If you get paid the same amount each month, then it’s easy to calculate what you bring in. Also, if you’re budgeting with your partner, then add in what they make.
Clearly, if you freelance or work part-time, then your income can fluctuate. If this is the case, then you’ll have to try and estimate as well as you can, then adjust as the money comes in.
By totting up your income, you know how much money you have to spend every month.
Add up your Regular/Essential Purchases
Next, figure out how much you spend on things that need to be paid monthly. This includes all of your bills, your average food spending, and so on. It lets you see how much you spend on unavoidable items.
Total your Extra Purchases
Following this, you will have other things that you need to buy. However, these aren’t deemed regular or essential as they don’t come every month. This includes things like buying new clothes or purchasing gifts for someone. Some months you will have other extra purchases that need to be paid. What if your AC breaks at home? You’d need to call up a company like Metro Express Service to fix it. For that month, your overall expenses will be higher than usual. But, you don’t include this in the regular/essentials column because you have no way of predicting when things like home repairs will happen.
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Look at How Much Money you Have Left After the Month
When you’ve taken all of these things into account, you can review your financial situation at the end of the month. Obviously, you can calculate how much you earn and how much will be spent on regular purchases. But, you can’t predict the extra purchases, so you have to go through the month before seeing what they are. The benefit of a budget is that you will at least know how much cash you can afford to spend on extra things.
Here, you’re in a position where you’re left with a figure. This is the money you have leftover after spending what you need to spend. From here, you can take some of this cash and deposit it into a savings account. Then, the rest will be added to your budget for next month.
Keep doing this, and you’ll soon find it easier to save money and stay on top of your spending. So, here’s to a more financially conscious new year!
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Favorites & Highlights – 2019 Top Posts
Favorites & Highlights – 2018 Top Posts
Favorites & Highlights – 2017 Top Posts
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Toodles,
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