Bisulfide

If you’re reading this article, you’re most likely having slight financial stress and searching for a way to gain control of your finances. Developing and sticking to a monthly budget has always been one of the ideal methods to do this. Having a sound budget is fundamental for managing your finances, one that has allowed me to get on with my day to day life even on limited funds. Managing my monthly budget is one of the most crucial things I do every month, and it has allowed me to consistently meet all expenditures, grow my savings, and control debt.

I usually plan my budget for the coming month towards the end of the month. This provides me with a clearer view of my expenditure in the coming month. It’s not a good idea to produce a budget after getting paid because, too often, that flush feeling of getting a paycheck leads to uneccessary and impulsive spending before the paycheck ever reaches the bank.

Managing my personal budget involves listing all the things that must be paid that month like mortgage/rent, utility bills, and other essentials like insurance, car loan repayment, transportation costs, and phone. These are the things I must pay to keep a comfortable roof over my head and continue earning money. I like to pad these essentials to produce “money back” after paying the bills and, if costs increase circumstantially, I’m always covered.

Next, my budget is subjected to a list of discretionary things I need to cover but could live without if absolutely needed. An example are monthly savings deposits, credit card repayments and donations. Don’t get me wrong, some of these things are also important, but in case of emergency they can be omitted. By paying credit card companies the maximum instead of the minimum, I keep my credit score high and my debt low.

My budget does not include the cost of food, clothing, or entertainment. These items get covered by what’s left over and that’s that. Some months involve lots of beans and rice, slow-cooker meals, free or cheap entertainment, and only one inexpensive piece of clothing . This strategy of overseeing my monthly budget has worked out very well over the long term as long as I observe it conscientiously.