Make a Monthly Budget
Edited by Thor, Zack, Eng
Hello and welcome to VisiHow. In this video, I'm going to show you how to make a monthly budget for your income and your expenditure. It can get difficult to manage money and it can seem to disappear a lot faster than it seems to come in, but with careful management and planning it's possible to create some structure to help you maintain your money, to keep it and to spend it in a reasonable way so that it is not all gone by the second week of the month. So in this example, I'm going to use the month of June.
Steps
- 1We're going to have to first identify how much money is coming in. So you know in June, you should be making one thousand pounds for example. So you know you have that coming in for June.
Advertisement - 2So now, as is always the case, it's all going to be about expenditure - the money that is going to be going out of your pocket. For this example, I'm using Microsoft Word. But you can do this anyway you like: with pen and paper, with card and colours if you want to highlight some areas, or with a spreadsheet in Excel if that's what you prefer. So, for expenditure, you need to work out how much money you're going to be spending. So we can say, "essential expenditure." So we can say things like rent or mortgage; they are essential parts of your expenditure. Other things include bills, car insurance, TV license, and so on. You'll have to identify first what are the essential things that you cannot avoid. You're going to have to pay for this, and this would obviously also include children if you have any, bus tickets and that kind of thing. So you list these things as essential elements of expenditure. Adding up these examples, we've got a total of five hundred twenty pounds. If you have your own private essentials (things that are only applicable to you), then you must add them in this section.
Advertisement - 3Then, you'll include other forms of expenditure. You might say for example, food shopping. It is essential, but because it's very variable and can change based on the situation (like how much disposable income you have), you'll put it in this section. Other things may be transport or petrol, which may go into either essential or non-essential depending on your particular situation. So now we can say, the total for all expenditure is seven hundred ninety pounds. So what we've done here is we've isolated the fundamental points of expenditure for you in this one month period.
- 4Now, you have an idea of your disposable income. The initial figure was one thousand pounds of income, so we get two hundred ten pounds. Now you can investigate and analyze where you can spend that money.
- 5You can break it down into a four-week section. So that would be fifty five pounds. You can balance it this way and say you have fifty five pounds to spend per week. So you know that you've got fifty five pounds in your pocket for that week and you cannot spend more than that.
- 6If you want to save, maybe you'll need to deduct from the two hundred ten pounds. So we can say minus one hundred for saving, now equals one hundred ten pounds. So you have one hundred you put in the bank, and one hundred ten pounds to spend. If we identify this dividing it by four, we have twenty seven pounds and fifty pence to spend weekly. That's not a huge amount of money, but if you know how much money you have that will prevent you from overspending and finding yourself in a bad situation.
- 7So this has been a video on how to create a monthly budget. If you have any questions, suggestions, stories, or you'd like to share your ideas about making a monthly budget, then please leave them in the comment section below. You've been watching VisiHow. Goodbye!
Video: Make a Monthly Budget
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Categories : Financial
Recent edits by: Zack, Thor
