What is personal budgeting, how to start and why?

What is personal budgeting, how to start and why?

 

At this current time where people are being let-off and are unable to work or earn money. As there is very little money coming in in it would mean that they would have to budget better. Most people do not know how to budget, as they have had no practice at all. However, you do not have to worry, as budgeting by itself is simple.

Normally to calculate your budget you should account for weekly spending, i.e. total amount spent per week. After about 4 weeks calculate the average for 1 week and that is your budget for 1 week. Use the total before average to calculate monthly spend and base it around that for now. Take your monthly earnings – spending to get your total ‘profit’ per month. To calculate earnings is any income into you or your business i.e. Salary, stock options, bonds and rent inwards. Your spending is everything that you pay for. If the figure you get for your profit is less than or close to zero you should think of ways to reduce spending. Instead of spending money on food by eating out, cook at home and bring food with you. Reduce costs for electricity by using less electronics at once.

                                      

 

Following some of these tips can allow you to start slowly saving. With money padding your account, you would not feel afraid to start taking risks, so while you save you would be able to make more money.

In conclusion budgeting allows you to save money, which in turn allows you to earn money.