Simple Steps for Budgeting
Budgeting is a critical part of achieving financial progression and goals.
4 Simple Steps for Budgeting
Set your goal: if you want an actionable budget you should first come in knowing what your goal is.
Understand your current finances: track your income and expenses closely for 2 months (either by going back 2 months or use the following two months of expenses). This helps you to identify where your money goes. It will also show you what you are, or are not, saving each month.
Reduce expenses: now it’s time to identify which expenses you can reduce or eliminate. In the following months, make it an effort to follow through with eliminating these.
Track finances: during the month, make sure to track your income and expenses closely. This is what helps to keep you honest. You can do this manually or even use an app like Mint.
If you perform all of the above and are still not meeting your savings goal, it means you are living above your means and it may be time for a lifestyle change and/or an additional stream of income.
