You may be new to creating monthly budgets. We want to share a few ways that you can create and manage a monthly budget in your planner.
LOOK AT YOUR INCOME
Start by taking a look at your monthly income. Consider any sources of income that you anticipate for that month to create a total. It is a good idea to know how much money you have available for the month before you begin to create your budget for the month. This strategy will help you see the big picture.
EXAMINE YOUR EXPENSES
Creating a list of your monthly expenses is the next step in managing your monthly budget. List any bills or financial obligations that must be paid for the month. What are your monthly living expenses? That is a good place to stat. Write down the due date to help you see the chronological order of your expenses. Add notes to your expenses list to help you identify specific details about your expenses.
SAVINGS OR EMERGENCY FUND
Consider adding your monthly savings or emergency funds amount to your expenses. This will help you remember to move money into your savings or emergency funds account when you begin paying the bills from the list of your monthly expenses. If you struggle to determine how to budget your monthly income, consider the 50-30-20 rule. The 50-30-20 rule suggests that 50% of your monthly income should go towards essential living expenses (rent/mortgage, food, utilities, etc.), and 30% of your monthly income should go towards personal discretionary expenses (hair, nails, shopping, dining, etc.), and 20% of your monthly income should go towards emergency funds or savings ( demolishing debt, college funds, retirement accounts, etc.).
DOCUMENT YOUR SPENDING
The last step in managing your monthly budget is document, document, document. Write down, and keep track of where your money goes. It is one thing to have a plan written down in your planner for where your money should go, and it is another to distribute your money. Sometimes, money is not distributed according to the monthly budgeting plan. Write down everything. Good recording keeping help you make informed decisions from month to month.
Are you interested in taking your monthly budgeting game to the next level? Invest in a budget planner or a yearly planner with monthly budget sheets.
Shop Budget Notebooks
Shop Priceless Planners