3. Label expenses 1-5 from most important to least important.
4. Average monthly cost from each expense.
5. Make adjustments and review often .
If you’re just starting to understand budgeting the 50/30/20 rule is a great way to start. You break down your income after taxes to 50% on needs, 30% on wants and 20% on savings and debt.
Budgeting is all about creating habits that benefit you financially, for the long term. I suggest utilizing apps like “Mint” , but before you do actually write everything out. Write down your monthly net income, then write every single expense, and decide what’s most important (label each expense). I believe it is important for us to write it down so it is engrained in our minds. I would suggest reviewing the bank statements and doing this at least once a month to reflect on your financial goals. The last thing I would suggest is to read on budgeting to learn better way to manage your finances. Here are some great reading suggestions below that will be easy on the budget, just click the title links.