While it can be a daunting task, there are certain things you can do to make it a lot easier on yourself.
1. Calculate your entire income after tax
Take your time figuring out just how much money you have coming in on a monthly basis. Don't forget to Include tips from jobs, and any interest you are expecting that month.
2. Next, figure out how much is going out
Start by looking at major expenses like rent or electricity, before looking to smaller things. Write down basic categories like housing, medical and car, before listing yoru spending for each category, like petrol, insurance etc.
3. Divide your expenses
Write an essentials list and an extras list so that you can see which expenses you can drop and which you can’t. Cross off the things you can live without.
4. It’s time to add it all up
Subtract what you spend from what you earn to see if you are within budget.
5. What should you do if there is an imbalance?
If your expenditure is more than your income it’s time to look to your non-essentials list to see what you can cut back on. However, if you have a little left over, rather than spend it frivolously, assign at least a portion of it to your savings account.
6. Set a goal
Trying to set a financial goal like paying off a particular loan will make budgeting that bit easier and keep you motivated.
