How to Budget Money 101

Budgeting. The nine-letter word in personal finance either excites you or conjures up images of torture.

Regardless of whether you’re excited,  terrified, or lost somewhere in between, there’s something we can all  agree on here. It’s that budgeting exists for one simple reason—because it works.

But exactly how do you budget money so you can reach your financial goals and enjoy life? This is the way! Keep on reading.

For me, personally, the first step has always been calculating my total income before even worrying about my expenses.

Totaling your income

The silver lining is that it’s often the  start of knowing exactly how powerful and useful a budget can be. It’s  eye-opening in ways you wish it weren’t at times!

Totaling your expenses

And now… it’s time we’ve all been  waiting for! It’s time for you to actually “calculate” your budget.

Let’s calculate!

By minus your total expenses (calculated  above in step 2) from your total income (calculated above in step 2),  you’ll arrive at a number that’s either in green or red, so to speak.

Let’s calculate!

Now that you’ve got the know-how when it  comes to budgeting your money, it’s time to put the above to good use  to reign in on your spending habits.

How to Budget Money: Make It Happen

Above all, you must remain consistent  and stick things through so that you can continue to improve the  relationship you have with your money now.

How to Budget Money: Make It Happen

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