How to Create a Monthly Budget: A Step-by-Step Guide
How to Create a Monthly Budget: A Step-by-Step Guide Creating a monthly budget is one of the most powerful steps you can take toward achieving financial stability . A budget gives you control over your money instead of wondering where it went each month. It helps you align your spending habits with your financial goals , reduce unnecessary expenses, and increase savings. Whether you’re working toward building an emergency fund , paying off credit card debt , or saving for a big purchase, a well-structured monthly budget is your roadmap to success. Step 1: Calculate Your Monthly Income Start by determining your total monthly income . Include your salary, side hustle earnings, rental income, and any other consistent sources of cash flow. Knowing your exact income is crucial for setting realistic spending and savings targets. Step 2: Track and Categorize Your Expenses Identify all your monthly expenses and break them into categories: Fixed expenses : Rent, mortga...