Knows Mag | Knows Guide On How To Budget Your Life
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how to budget your life

Knows Guide On How To Budget Your Life

HOW TO BUDGET YOUR LIFE

A lot of people don’t know how to draw up a budget. Here is a guide to help you track your monthly expenses and get on your way to financial freedom. (Not each section will apply to you. If it doesn’t just put in a zero and move on. To help we have included an excel sheet you can DOWNLOAD to make it easier for you to manage.

 

Monthly Income

After taxes, how much money do you earn each month. This includes all steady streams of money that you get (retainers, etc).

Housing costs

Rent/Mortgage
Utilities:
Electric
Gas/Oil
Water/Sewage
Mobile Phone
TV
Internet
Generator
Other
Running Total

Transport Costs

Petrol
Car Payment/maintenance
Other (trotro/ taxi/ bus)
Running Total

Personal and Household Costs

Groceries
Clothes
Toiletries
Cleaning supplies
Haircuts
Laundry
Manicure
Pedicure
Running Total

Family Costs

Medical Expenses (dental, optical, prescription, medication, etc)
School Fees
Day Care/Nanny
Pet Supplies
Other
Running Total

Entertainment Costs

Eating Out
Shows (cinema/concerts, etc)
Alcohol
Cigarettes
Music
Magazines
Travel
Holidays
Hotels
Running Total

Debt Payments

Debt 1
Debt 2
Debt 3
Running Total

Now take your monthly income and subtract your expenses from it. Whatever is left over is your discretionary income. If you are in the black, you are doing well. Keep it up and grow your number. If you are in the red, then you are mismanaging your money. You either need to cut down on your spending or increase how much you earn. Only you know what you can cut and what you can’t.

 

 



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