Making a monthly budget can be difficult, especially if you’re not sure where to start. There are a lot of factors to consider, and it’s easy to forget something important. That’s why we put together this list of things you should never forget when creating your monthly budget. If you take these into account, you’ll be able to create a budget that is realistic and achievable!
1. Your income
This is the most important factor in your budget. Without knowing how much money you have coming in, it’s impossible to create a realistic budget. Make sure to take into account all sources of income, including your salary, any investments, and any other forms of income. If you’re not sure where to start when it comes to budgeting, there are a lot of great resources available. For example, You Need A Budget is a great tool that can help you get started.
2. Your expenses
The next step is to track your expenses. This can be difficult, but it’s important to be as accurate as possible. Start by looking at your bank statements and credit card bills. Make a list of all of your regular expenses, such as rent, groceries, utilities, and transportation.
Then, take a look at your spending patterns over the course of a month. Are there any areas where you tend to spend more than you’d like? Are there any expenses that are variable, such as entertainment or dining out? Once you have a good understanding of your spending patterns, you can start to create a budget that works for you.
This can also help you realize what things you should reduce and how much you spend on them. If your electricity bill is so high you might want to look into alternative energy sources or ways to conserve energy. This is where the New Zealand solar savings calculator can help you know how much you can save every month from switching to solar. Also, you will know how long it takes to pay off the solar panel investment.
3. Your debts
Another important factor to consider is your debt. This can include things like student loans, credit card debt, and car payments. If you have a lot of debt, it’s important to create a plan for how you’re going to pay it off. Otherwise, it can be easy to get overwhelmed and end up in even more debt.
There are a lot of great resources available to help you get out of debt. For example, the National Debt Relief website offers a lot of helpful information and tools.
4. Your savings
Finally, don’t forget to factor in your savings. This includes both your emergency fund and any other money you’re setting aside for specific purposes, such as a down payment on a house or retirement. Having a healthy savings account is one of the most important things you can do for your financial wellbeing. If you don’t have much saved, start small and gradually increase your savings over time.
Making a monthly budget can be overwhelming, but it’s important to take the time to do it right. By taking all of these factors into account, you’ll be on your way to creating a budget that works for you. And once you have a budget in place, stick to it! Having a budget is only helpful if you’re actually following it. If you need help getting started, there are a lot of great resources available. You can also talk to a financial advisor to get started on the right track.