Managing My Monthly Budget
If you’re reading this article, you’re most likely looking for a way to have control of your finances. Developing and sticking to a monthly budget has always been one of the ideal ways to do this. Having a solid budget is important for managing your finances, one that has allowed me to survive even on limited funds. Monitoring my monthly budget is one of the most important things I do every month, this has allowed me to systematically meet all expenditures, grow my savings, and eliminate debt.
I normally organise my budget for the upcoming month close to the end of the month. That gives me a heads up about what’s down the road. It’s not a good idea to develop a budget after getting paid because, too often, that flush feeling of receiving a paycheck results to uneccessary and spontaneous spending before the paycheck ever reaches the bank.
I start my personal budget by outlining all the disbursements that must be paid on time like, loan repayments, utilities, insurance policy payments and auto loans. These are the things I must pay to keep a comfortable roof over my head and continue earning money. I like to pad these necessities 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. These items may include monthly savings deposits, credit card repayments, and donations to charity. Don’t get me wrong, some of these things are also important, but in case of emergency they can be excluded. By paying credit card companies the maximum instead of the minimum, I keep my credit score high and my debt low.
My budget will not include the cost of food, clothing, or entertainment. These expenses 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 honor it scrupulously.
