If you’re out on your own, it’s important to know how much money you can spend compared to what you actually have. It’s easy to fall into a pattern of spending frivolously without really knowing what’s in your bank account, and assuming that there is enough in there to cover it. But moving into an apartment really teaches you about finances - and proves that you have to keep track of them.
That being said, it can be hard to create a budget that fits your basic needs. Here’s some tips:
Monitor your expenses
Take a month and monitor how much you’re spending, where you’re spending, and how much you have left over - compared to how much you make that month. Then, you’ll have a better idea of where your money is actually going.
Map out all your expenses
If you actually sit down and break your expenses into categories, this’ll give you a clear idea on how much you’ll be spending each month. Once you do this, you can figure out which expenses are unnecessary, and cut them out of your budget entirely! Here’s an example of a budgeting sheet.
Split up the rest
After you’ve created a budget which includes your incoming and outgoing funds, split up the rest. Set a goal for food, transportation, entertainment and savings, and do not go over the designated amounts. This will help you be more conscious of your purchases and to stay on track with your budget. It’s also recommended that you put at least 10% of your income towards your savings.
Review your budget down the road
Test out your budget for a few months, then take some time to reflect back. Is the budget working for you? Have you been able to stick with the boundaries that you’ve set for yourself? If not, then maybe it’s time to rework the budget to better suit your needs.
Budgeting can be challenging, but with trial and error, you’ll find that it’ll help you cover your expenses now and get you set for the future. Check out more financial advice from WilliamPaid.com here.
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