How To Build a Personal Budget

Many are wondering how to build a personal budget. American Learnvest.com portal offers step by step instructions on how to clean up the personal finances.

1. Assess your income:

Perhaps you have a very respectable salary, but after the taxes you have to only a fraction of that amount. Spending on the life you have what is left after all the tax deductions, as well as pension and insurance contributions.

2. ... And The Cost:

Your budget should be two items of expenditure: fixed and unfixed. The amounts of fixed costs remain the same each month - for example, the rent for the apartment, cable TV or the Internet. Accordingly, the non-fixed costs are subject to change - in this category, for example, includes food, utilities and transportation. Fixed costs are more predictable, and non-fixed, you can plan more flexibly - for example, if you want to save something.

However, even the fixed costs and are subject to change may be reduced. For example, if the rent for an apartment is too high, you can find cheaper housing.

Here is a sample list of items of expenditure.

Fixed costs:

- Rental fee;

- Loans (if any);

- Cable TV;

- Mobile connection;

- Internet access;

- Gym.

Floating charges:

- Utilities;

- Medical services and medicines;

- Products;

- Restaurants;

- Alcohol;

- Laundry service;

- Travel / leisure;

- Beauty salon;

- Clothes;

- Transport;

- Entertainment;

- Cafe;

- Caring for pets;

- Gifts for family and friends (birthdays, holidays);

- Charity.

The Desires And Needs:

Remember as a child my mother to explain to you the difference between "I want" and "I need" when you want brand new inline skates? It's time to freshen up this lesson in his memory, because not all expenses needed. When deciding for yourself, you need this or that purchase, ask yourself: "Do I live without ... next month?" If the answer is "no", then the purchase is necessary and you should be included in the budget. To the need to include rent, food, utilities. Surfing the restaurant and entertainment will surely make your life more fun, but these expenses should be secondary to your budget. Any extra money to spend on it - great, but do not forget about spending priorities. 

3. What do we spend the money:

Make a list of all your income and expenses - learn checks and balances, find out what you spend your money. Here's a sample list: 

How To Build a Personal Budget

Income:

Costs:

- Pension contributions;

- Savings (do not forget to lay a "rainy day");

- Rental fee;

- Utility services;

- Repayment of credits (if any);

- Cable TV;

- Medical services and medicines;

- Mobile connection;

- Internet access;

- Gym;

- Products;

- Restaurants;

- Alcohol;

- Laundry service;

- Travel / leisure;

- Beauty salon;

- Clothes;

- Transport;

- Entertainment;

- Cafe;

- Caring for pets;

- Gifts for family and friends (birthdays, holidays);

- Charity.

5. Savings:

Never too late to start making savings. No more excuses - start today. Savings - a great start-up capital and an investment in your future. Then you say to yourself, for it is "thank you."

6. How to save?:

You can save on a lot of things. Here are a few tips:

Drink more water. Avoid carbonated drinks - and you, and your wallet will feel better;

Eat at home. At the restaurant leaves a lot of money - and if you live in a big city, then the cost of a meal in the restaurant, respectively, increases;

Make a shopping list and stick to it strictly. Resist the temptation to shop.

And yet - do not forget to turn off the lights when you do not need, go bigger and smaller use the machine, and most importantly - always remember the ways to save money, you know that.

7. Use computer programs for managing personal finances:

Now the Internet can download a variety of programs, with which you can calculate their costs and plan your budget. Often use such software.

8. Strictly adhere to the budget:

It is not only the right to make a budget, and stick to it religiously. At the end of the month check against its costs and how they coincide with what you had planned earlier this month. If at first you did not work - not terrible, all comes with experience.

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