Chibson1
Valued Contributor
Making a budget is usually very difficult for beginners and it requires step-by-step procedures if you really want to make an effective budget. In this article I am going to show you simple steps of making a very good budget if you are a beginner;
Know your income: This is usually the first step if you want to make an effective budget. It is highly impossible for you to make a good budget if you do not know the amount of money you make.
Make a simple list of your expenses: Yeah, another step you need to take is to make a list of the things you spend money on. This is very important and necessary or any kind of budget you want to make.
You need to categorize your expenses: There are two types of expenses; fixed and variable expenses. fixed expenses are those expenses that the amount of money you spend on them that remains constant for a long period of time and a typical example is mortgage.
Variable expenses can increase or decrease and a typical example is groceries and a lot of other things.
Another step is to calculate your net income: Your net income can be calculated by subtracting your expenses from your income. After subtracting what we get is what we call your net income.
Then set financial goals: This is very important and necessary. You need to set your financial goals and also remain disciplined towards the budget you have made.
Know your income: This is usually the first step if you want to make an effective budget. It is highly impossible for you to make a good budget if you do not know the amount of money you make.
Make a simple list of your expenses: Yeah, another step you need to take is to make a list of the things you spend money on. This is very important and necessary or any kind of budget you want to make.
You need to categorize your expenses: There are two types of expenses; fixed and variable expenses. fixed expenses are those expenses that the amount of money you spend on them that remains constant for a long period of time and a typical example is mortgage.
Variable expenses can increase or decrease and a typical example is groceries and a lot of other things.
Another step is to calculate your net income: Your net income can be calculated by subtracting your expenses from your income. After subtracting what we get is what we call your net income.
Then set financial goals: This is very important and necessary. You need to set your financial goals and also remain disciplined towards the budget you have made.
