How To Budget Your Money

New year is out. We all are outside the pandemic now. Though virus continues to exist and so does the vaccine. Now we have learned to live with it.

We have the world open and we have to now get out and earn money. We have to take risks and also make sure to budget our money so that in bad days we can make sure to plan our funds properly.

When you learn to budget your money the right way, you realize that you have more control over your funds even in a bad days. So in this post we are going to learn to do just that.

Let's see how to budget your money.

Before we can even talk about the budget and the plans around the same. Let's first discuss how much money do you get into your hands.

How Much Money Do You Get

What are your sources of money? Like do you work on day job? Freelancing? article writing? crypto? stock trading? You have to list all of your sources of income.

Once you list the income sources, make sure to list out taxes on each of those sources of income. Make sure you list them out and don't ignore them.

Knowing how much money you make and how much taxes you pay on those sources is definitely something you should consider when it comes to managing money.

So that's one part about the money management, where you have to be aware of the income sources that you are going to get in your wallet.

Find Your Spending Areas

Do you pay bills monthly or based on the quarterly payouts? It all depends on what spending you have set for your bills, credits etc. You need to find them out.

Find out where you spend the money during everyday expenses. Say food, transport, clothing and other expenses.

Make sure to get those expenses sorted based on the daily, weekly and then monthly expenses. Finding out such areas is a good thing long term.

When you know where you are spending the money, you realize what to and not to do with your money and you reduce the funnel where money is not helpful.

So this part of your budget you need to be aware of from the start by categorizing the funds input and output.

Track the Money Movement

Do you know where your money is being spent the most? If you are tracking the spending areas then the movement finding becomes even more easier.

You need apps that help you track the expenses of cards, QR code spends, bank payments and other cash payments.

When you track the cash spent, you can then find out in weekly, daily and monthly budget where the money is being moved.

You can use apps like You Need A Budget. There are also some of the free apps that you can use that helps you track the money movement.

Reduce Expenses

Now that you have the numbers at your disposal the next thing that you would need to do is the reducing of the expenses. You have to get this done.

Some of the people take time in this process. However unless you realize how to reduce the expenses and how to make the most out of your funds. You won't take budget anywhere.

Find out where you spend money, and see if you can replace the sources with the free sources for the funds, that's how most people do for reduction of expenses as time goes on.

Finding out the leak in the budget and then fixing it by reducing the spend on such sources is one of the way to handle the financial budget.

What do you think?

My view towards the budget and the income management has been mostly planning, tracking and the management of the funds. You can see that above content can help you set the budget for yourself and move with the changes.

What is your opinion? How do you set your budget?

I'd appreciate your comments :)