It’s the new year and if you don’t want to get caught not knowing how much money you have to spend every month, it’s time you put together a budget.
It’s not nearly as difficult as it sounds!
What is a budget:
A budget is very simply a list of things you need to spend money on (your expenses) and their amounts, subtracted from the amount of money you earn.
If there is money left, that is the money you have to spend as you will, or, if you’re clever, money you can save!
How to start:
Put the most important things you need to spend money on at the very top of your list and the things that are less important to spend money on at the bottom of your list.
The most important part of a budget is making sure that the money you spend is not more than the money you earn.
Remember to save. Budget to save or else you will not put money away and spend it on other items.
Here is an example of a budget you can use.
- Simply put items that you will earn money from in the income column (left)
- Put the items you have to spend money on in the expense column (right)
- Then add up all your expenses
- Minus these expenses from your income and fill this amount in the “remaining” column
- This is the money you will have left over after paying for everything you need to.
In the example below, Anna earns R7000 a month. See how she worked out her budget
Once Anna has paid for everything she needs to, she has R250 left which she can save for emergencies, or to spend on something she really wants.
That it is always a good idea to keep money aside in case of an emergency. You don’t want to be left without money if you need it for something you did not anticipate.
If you need help with budgeting, contact us on:
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SMS or send a please call me: 083 450 0508