How to create a budget

JANUARY 2
MONEY MONDAY
One of the best ways to start off a new year is by determining goals – including financial goals for business and personal. To achieve these goals? A BUDGET!
Follow these simple steps to set up a budget:
1.     Determine your income: Start by calculating how much money you bring in each month. This includes your salary, any additional income from a side job or business, and any other sources of income.
2.     List your expenses: Make a list of all of your monthly expenses, including bills, groceries, and discretionary spending. Be sure to include fixed expenses, like rent or mortgage payments, as well as variable expenses, like entertainment or dining out.
3.     Calculate the difference: Subtract your total monthly expenses from your income. If you have money left over, you have a surplus. If you have more expenses than income, you have a deficit.
4.     Set financial goals: Determine what you want to achieve with your budget. Do you want to save for a down payment on a house, pay off debt, or build up an emergency fund? Setting specific, achievable goals will help you stay on track with your budget.
5.     Make a plan: Based on the difference between your income and expenses and your financial goals, create a plan to allocate your money. Consider creating a budget spreadsheet or using a budgeting app to track your spending and stay on track.
6.     Review and adjust: Periodically review your budget to see how you’re doing and make any necessary adjustments. Life is unpredictable, so it’s important to be flexible and adjust your budget as needed.
IMPORTANT: Remember, a budget is a tool to help you manage your money and reach your financial goals. It’s not about deprivation or restriction but about making informed decisions about how to allocate your resources.