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A budget is a plan for the future for how you spend and save your future income. Although many people use a set budget plan for the expenditure of their income and try to save as much as possible, but most people still ignorantly spend their income as they see fit and by the end of the month have none or very little left. The key to saving up is having a budget plan to spend less than your income. A good monthly budget can help ensure you pay your bills on time, have funds to cover unexpected emergencies, reach your financial goals and even help take a vacation to blow off steam. You should already be well aware of your income and monthly expenditure by going through last months expenses. You can also use our free online budgeting calculators below to design a budget that helps save money.

Stream Line your Income

To start you need to gather all your income resources. Include all sources of income such as salaries, interest, pension and any other income; including a spouse’s income if you’re married. Most of the times the taxes are already taken out of the pay, if they aren’t you need to set them aside first. Now take a worksheet and start writing down expenses.

Estimate Expenses

A mentioned before the best way to estimate your spending’s to keep track of them for a month while trying to maximize savings. Make different categories for your expenses such as fixed expenses (rent, insurance) , necessary expenses (Bills, food), flexible expenses (various). If you are not sure how to calculate all of these start keeping track of them daily. But remember to keep your spending’s flexible to allow for some breathing room in your budget plan.

Calculate The Difference

After finding how much you spend each month minus it with your net income. If the number is positive you are spending less than your income and are saving up! If it’s less than you need to cut back on your expenses, which you can do easily after determining your monthly expenses.
Well by no you should have been able to create a monthly budget or at the very least have gotten the idea how to go about doing it. If you aren’t able to follow your budget then chances are your trying to save up to much which is decreasing the flexibility of the budget. Try revising your budget a couple of time to find what works best for you.