Creating a monthly budget. While you may not currently jump for joy when you read those words, budgeting can expand your financial horizons far beyond what you think is possible.
Budgeting is when you allocate funds to specific areas of spending. It is a practice that keeps you financially responsible, prepares you for the future, and helps you save money so you can accomplish your goals.
Let’s look at a few easy steps you can take to establish your monthly budget.
Identify how much money you make each month (monthly net income)
This may seem like a no-brainer, but you are going to need to know how much money you make in a month so you can distribute those funds throughout your budget.
Calculate your fixed and variable expenses
Expenses. These are all of the things that you pay for each month, taking away from that net income you get on payday. This step tells us where your money is going on a monthly basis. Pro tip: check back on your credit card statements to get...