Raster Gang

If you’re reading this article, you’re most likely going through slight financial stress and looking for a way to gain control of your finances. The best way to do this is to develop a monthly budget and sticking to it. A sound budget is an essential tool for managing money, one that has allowed me to survive even on limited funds. One of the most crucial things that I do every month is outlining my monthly budget, and it has allowed me to consistently meet all expenses, grow my savings, and control debt.

I normally map out my budget for the coming month close to the end of the month. This will prepare me with my expenses in the upcoming month. It’s not a good idea to develop a budget after getting paid because, too often, that flush feeling of getting a paycheck results to nonessential and impulsive spending before the paycheck ever reaches the bank.

Start your personal budget by determining all the things that must be paid that month like rent, electricity bills, insurance policies, loan repayments and telephone bills. These are the essential things that I must pay to keep a comfortable roof over my head. I like to pad these requirements 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 needed. These items may include monthly savings deposits, credit card repayments, and donations to charity. Don’t get me wrong, some of these things are also essential, but in case of emergency they can be excluded. By paying credit card companies the maximum instead of the minimum, I keep my credit score high and my debt low.

My budget does not include the cost of living such as food and entertainment. These things 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.