Design your personal budget

Design your personal budget

Nowadays, many people have found themselves forced to economize and try to spend as little as possible in an attempt to return to a monthly budget, which often has decreased dramatically due to changes in the contract, layoffs and, sometimes, loss of job. Whether you live with your family or that you have chosen the life of a single it is still important to be able to keep costs under control and learn how to manage your savings in a responsible and conscious way. Designing a personal budget is the easiest way to be able to organize everything efficiently and immediately.

Organise your income and you expanses

Organise your income and you expanses

Documenting and controling your monthly expenses is an excellent method to understand how much money you spend on spesific things. In this way, you will see if you can afford to spend on things that are not strictly necessary or if you can, on the contrary, add something such as an investment plan or savings. Even those who do not have to work hard to get to the end of the month, therefore, may find it convenient to keep track of a schedule that shows their economic situation.

The help of the computer in this kind of activity can prove valuable, if not essential. There are several software that can respond to our needs, but for those who must control a household budget may be sufficient to create a simple Excel sheet on which to place all the data. In order to establish a good budget, it is helpful to first consider what your fixed monthly expenses are. The cost of the rent, mortgage payments or machine or service charges are to be counted among the outputs that, each month, you will have to take into account.

To these add all other outputs, such as the cost of maintaining the car, paying bills, the cost of food and everything, in a monthly basis, can be classified as expenditure. Once you have considered all the outputs, these will be compared with the revenue, usually formed from the salary and occasionally by other minor additions. Once you’ve designed a personal monthly budget, it will be easier to weigh the costs and be able to manage your income and your savings in such a way that they are not in the passive, without any particular difficulty.

Establishing your own personal budget can seem like a tedious and complicated task. In fact, equipping yourselves with good will and some computer tool, you can reveal a simpler operation than expected which will allow you to better evaluate and manage the money you have and spend.

By +Nikos Kontorigas

About Nikos Kontorigas

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