How do you prepare a budget?

[TOZZIBLINKZ]

How to prepare a budget isn't something and individual should run helter-skelter in finding knowledge for, because preparing a budget is something that is pretty simple but for that to be done effectively and efficiently you need to first of all have in mind the amounts of needs and wants you need to satisfy and the amount of money you have presently to allocate to each of these needs and wants and make sure that they are satisfied. Preparing a budget could be in written form or in computerised from. The written form of budget is really used by private individuals but computerised form of budget is mostly used by high technology based business institutions who practice the financial activity of budgeting. As an individual who want to manage his or her money efficiently and perfectly, you would have to prepare a budget and as I have already mentioned, you must have in mind the needs and wants of yours you want to satisfy.

In a book, you could list all the goods and services needed to satisfy your needs and wants, and beside them you could list the price or amount of money you designate to buy them at the moment. Although in most cases, on getting to the grocery store or to where these goods and services are bought, the prices of this goods or services may change or may not tally with the ones you have in the budget paper for book, a quick solution to this, is to taking money meant for a lesser need in the budget, and add to those with a more pressing need to you.

 

[Yusra3]

It's a good question, and one that I think about a lot. How do you prepare a budget?

I think the first step is to see what your current spending habits are. If you're not sure where your money is going, it's hard to know how to make changes in the future. When I figure out my spending habits, I look at where my money is going and how much I'm saving on average each month.

Next, I take a look at my income and expenses. This will show me if there are any areas where I could cut back or get more money coming in. For example, if there are times when we have to go over our bills because of unexpected expenses like car repairs or medical bills, we have to find ways to make up for those costs so we don't end up having more debt than necessary.

Finally, I look at all three figures together as a whole so that I can predict what will happen in the future based on my current situation. This helps me know whether or not we should make changes or stay put with our current budgeting techniques..

 

[Shaf]

I love budgeting. I do so even fir the smallest of expenses because it helps me focus on what important and what isn't.

I first start my budget by putting everything I think I want and need on paper. It's important that they are on paper because it's easy to forget somethings or miscalculate if you want to do it all in your head.

Next, I start separating them into needs and wants. It takes discipline and some time to get this right, because the temptation can be strong to get something you don't need, but that's just extra expenses you can do without
It's also important to prioritize and cut down items at this point.

My most difficult task in budgeting in giving the items priority. There are items that you can also look for cheaper subsititues to cut costs.

Then it's time to implement what you've budgeted. This also needs discipline. A way to ensure you don't spend more than what is on your budget is to hold only as much money as you need and to limit the use of credit cards when shopping.