Setting Your First Ever Budget: How to do It in 7 Easy Steps ...

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No matter how high or low your paycheck, a budget is the best way to manage your money.

A budget isnโ€™t just something you need to make if you are in debt.

Making a following a budget will keep you out of debt and in control of your spending and savings.

If youโ€™ve never set yourself a budget before, hereโ€™s how:

1. Calculate Monthly Income

The first place to start when considering how to set a budget is to sit down and calculate the total of your monthly income.

This is obviously the key starting tip as once you have a final figure down on paper you will be able to begin to plan a sensible budget.

This may not be just your salary;

as if you are business owner or have secondary income interests, then it will all start to add up.

2. Note down Your Fixed Expenses

Add together all of the monthly expenses that are classed as non-discretionary such as rent or mortgage, water bills, gas bills, car payments, groceries or student loans.

Putting this figure together will help you to see what amount will have to come out of your budget every month without question.

From there you will able to make plans for the money that is left over after the non-discretionary payments have been taken out.

3. Set Financial Goals

It can be really helpful to sit down and physically write out your financial goals.

Having a real, tangible copy to look back and refer to can help to create a vision of what your financial future could be like.

Having a reminder that you strive to be debt free, want to start a retirement account or save up for a deposit on your first house will keep you inspired and determined to keep to your budget.

Sort out Your Discretionary Expenses
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