Make your financial goals a reality with a sound budget whether it is to pay off your bills or plan for next vacation.
- Establish your total monthly income
This is your take-home (after tax) from your full-time job, secondary job and side hustles. - Set a financial target
It is important to pay yourself first. This set of funds that your allocating should go towards your savings for a rainy day, investments and money for you pleasure because after all.. you deserve it! Treat this a monthly reoccurring bill - List all your expenses.
This includes rent, food, utilities subscriptions and everything you would typically buy on a monthly basis. - Subtract expenses from income
After calculating your expenses and financial targets subtract from your income. If after your subtraction your left with extra cash Great! If not, re-evaluate your budget, figure out ways to increase your income and decrease expenses as best as possible. - Track your expenses throughout the month
This can be tricky for some persons however this is essential in order to stick within your budget. Watch the video below for some amazing apps that can be your next mobile budget planner.
Always remember to be realistic with your goals, it may also help to overstate your expenses and underestimate your income (if your income isn’t fixed). This blog was just one of the many methods of budgeting. Which one do you use and how has that method affected your financial life? Share your comments down below!
Caribbean Financial Blog 