3. Leads to more informed decision-making With a clear budget, you make decisions based on the information you have in front of you. If you don’t know the amount of money in your bank account, what to expect from your monthly credit card statement, or what your daily expenses add up...
But you can—and should—budget every month, irregular income or not. It takes a little getting used to, but it isn’t hard if you follow these six steps. 1. List your income. If you’ve got an irregular income, plan low. That’s right—you should set upyour budgetbased on yourlo...
Read on for 5 simple steps to make a budget that you can stick to. WHAT IS A BUDGET?Simply put, a budget is a written list of your income (what you make) and expenses (what you spend). Making one will show you WHERE your money goes every month. ...
Of course, that’s the basis for any budget. But it can be particularly important if you’re trying to budget on an irregular income because you may have especially high- or low-income periods. You want to start tracking as soon as possible to build up accurate data on your average inco...
Step 1. Figure out your after-tax income Step 2. Choose a budgeting system Step 3. Track your progress Step 4. Automate your savings Step 5. Practice budget management
You should set realistic spending limits based on your income, and remember to plan for irregular expenses like holidays or car repairs. Consistency is key, so make budgeting a regular part of your financial routine. And don’t forget about savings, the money you put away for the future. ...
If you get paid weekly or biweekly, list four weeks’ of income here, not your theoretical monthly income based on 52 weeks’ pay divided by 12. Four weeks’ income is all you can count on in any given month, so your budget for monthly expenses must fit that. In the months when you...
Step 5: Enter Your Take Home Pay Into Your Budget Now is the time you will go back to the budget you created here and enter your “take-home” pay into your income. Remember, you are creating azero-based budgetBEFORE the month begins. This means you are going to determine your monthly...
Other expenses change up, like groceries or gasoline. By the way, that grocery budget line is super hard to guess at first, so just start with a really good estimate based on your past spending. You’ll learn better what you actually need here in the months ahead. ...
Stashing 10% of your income into yoursavings accountis daunting when you're living paycheck to paycheck. Balance your budget before starting incremental savings. It doesn't make sense to have $100 in a savings plan if you are fending off debt collectors. Your savings will have to wait until...