Did you know that almost 80% of Americans are stressed over their finances?
If you don’t feel like you’re in control all of the time, you’re certainly not alone! Managing money is incredibly hard and you probably always feel like you could use some more, but that just means you’re not in balance.
When you are in balance, you’re only spending what you know you can afford and your finances are organized. It’s the key to reducing money stress and something everyone should be working towards! To get to this point, creating a budget is essential.
Find out how to budget your money and reach bank-account-bliss in this guide.
Work Out Your After-Tax Income
When it comes to how to budget your money, the first thing you need to do is work out the amount you have. You need to add in all forms of income, including any side hustles, as well as money that might be deducted from your paycheck for health insurance and savings; it all counts! Once you have a clear picture of how much you have, you can start budgeting.
Choose a Plan
There’s no best way to budget your money and you need to find a plan that works for you. One of the most common is the 50-30-20 plan – 50% of your income goes towards your needs, 30% towards your wants, and 20% towards your savings and paying off debt. There are different ways to budget your money, but if you’re just starting out this is a great one to follow for a balanced life!
Start Tracking Your Spending
A key aspect of how to budget your money monthly is keeping track of your spending. You can create a spreadsheet, keep a notebook, or use a digital tool to keep an eye on where your money is going and make sure you’re sticking to your budgeting plan. Keep your tracking tool updated regularly to stay on top of things!
Automate Your Expenses
If you have monthly expenses, set up automated payments. This will take the money out as soon as your paycheck comes in, meaning that you won’t feel tempted to spend it on your wants rather than your needs. Set direct debits up for savings accounts, bills, and paying off debt for effortless budgeting.
Don’t Spend More Money Than You Have
It may sound obvious, but you’d be surprised how many people do spend more money than they have! If you’re finding you need to, it’s time to cut back on your spending. Avoid credit cards and quick cash loans from places like JG Wentworth and focus instead on how you can live on the money you have.
Budget Your Money
If it’s time to take control of your finances, budget your money! A budget is essential for good cash flow and making sure you’re not overspending. Get started today and say hello to a more financially stable future.
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