Budgeting Basics

Know Your Income

Start by calculating your total monthly income, including salary, freelance work, rental income, or any other cash flow sources.

Track Your Expenses

List all monthly expenses—fixed (rent, utilities) and variable (groceries, dining out). Be honest and thorough to get a clear picture.

Categorize and Prioritize

Group expenses into needs, wants, and savings. Prioritize essentials and set realistic limits for discretionary spending.

Set Spending Goals

Assign limits to each category based on your income and priorities. Make sure you also allocate funds for emergency savings or debt repayment.

Review and Adjust

Track your spending throughout the month and adjust where needed. A budget isn’t set in stone—refining it over time is key to long-term success.

How to Create a Simple, Effective Monthly Budget

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