Making a budget plan lets you keep track and control your spending. It ensures that you will always have enough money for the things you need and see if there is extra money for the things you want. Following a budget or spending plan plays an important role in saving and will also keep you out of debt.
Here's the basic steps to set up a personal budget plan, keep on top of your debts and start to save regularly:
- Categorize your expenses.
- From your list of expenses, develop two separate budget lists, one for essentials and the other for extras.
- Look through these lists to find flexible budget expenses where you can cut back.
- Estimate what you spend.
- Add up your budget essentials list and the extras list separately.
- Subtract the essentials total from your monthly income and, if you have money left over, subtract the extras total from that amount.
- If your extras list takes you into negative numbers, start looking for places to cut back.
Feel free to download this free printable personal budget planner that I am currently using. Check this out!
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