How do you budget your personal finances?

Answer 1

Taking a look at your personal finances and setting up a budget is a really important thing that everyone should be doing - especially if you have trouble managing your finances.

To make a budget for yourself you'll have to total up all of your expenses and subtract that number from your earnings.

First make a list of all of your essential living expenses - rent, car payment, insurance, bills, groceries, gas, etc.

Then make an estimated portion for all of your additional expenses - entertainment, food, drinks, clothing, home furnishings, etc.

Once you have listed all of your expenses, add up the values of each, and subtract that total from the total amount of money that you receive from your monthly salary.

Ideally, after subtracting your expenses from your earnings you should have some money left over to either put in savings or spend where you wish.

If your budget shows that you are spending more than you are making, or if you are barely breaking even, you may want to cut out some unnecessary spending.

If you go to dinner and a movie every weekend with your friends, you may want to only go once a month - this will help you cut back on your spending. Try having movie night at each others houses instead.

Stopping at your local coffee shop every morning before work can add up quick, try making coffee at home instead.