The Net’s Most Wanteds

If you are reading this, you’re likely interested in searching for ways to control your finances. The best way to do this is to create a monthly budget and sticking to it. A sound budget is a fundamental tool for managing money, one that has allowed me to live well even on limited funds. One of the most crucial things that I do every month is outlining my monthly budget, this has allowed me to systematically meet all expenditures, grow my savings, and eliminate debt.

I usually plan my budget for the upcoming month towards the end of the month. This provides me with a clearer view of my expenses in the coming month. It’s not a good idea to prepare a budget after getting paid because, too often, that flush feeling of receiving a paycheck results to unessential and spontaneous spending before the paycheck ever reaches the bank.

I start my personal budget by outlining all the expenses that must be paid on time like, loan repayments, utility bills, insurance policy payments and car loans. The main idea is to apportion a budget for the things that I must pay to keep a adequate roof over my head and continue earning money. I like to pad these essentials to make “money back” after paying the bills and, if costs increase unexpectedly, 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 unavoidable. An example are monthly savings deposits, credit card repayments and donations. Don’t get me wrong, some of these things are also essential, but in case of emergency they can be left out. 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 conscientiously.