How to create a budget in 6 easy steps

It can be difficult when creating a budget to know where to start. Often people create a budget then not follow through with it. This article will go through 6 easy steps to help you create a budget and stick to it.

Identify Income

When creating a budget, it is important to know what income you currently must cover expenses and save. When recording income, it will be best to see how much you make either weekly, fortnightly or monthly. If you are a casual working find the average you make each month and calculate best and worst-case scenarios. Don’t forget to only record you take-home income after taxes.

Calculate Expenses

It is important to track you’re currently spending and catergorise it. This can help you decide which areas you are spending too much or too little in. Fixed expenses such as car repayments, rent or mortgage repayments cannot be altered but food expenses and entertainment can be easily adjusted to help you save more.

Set a goal

Having a goal or goals can help keep that drive to stick your budget. Make a list of short-term goals (1 year) and long-term goals (more than a year). This can help you calculate how much you are wanting to save. Having goals can help make the budgeting process easier as you know why you are budgeting.

Decide a method to track your budget

Creating a budget for the first time can be difficult and sticking to it can be even tougher. Hannans360° can assist you in creating a budget and provide professional advice on the best and easiest ways to achieve your goals.