Making a Budget

A budget is money plan

First we look at the importance of a budget:

•     A budget allows you to understand where your money goes.
•     A budget helps you not to spend more than you earn.
•     Budget helps to keep track of personal cash flows.
•      A budget teaches you difference between necessity and luxury.

I do this every month before my earnings come in so this really  works

Requirements for making a budget

You need

       A note book to start keeping records of what you are spending your money on,

 shopping with this note book would not be a bad idea. You could use your diary

The budget should be made before you spend.

•  List your total income for example salary, wage, child support any kind of   moneykind of money coming in.
• List all your likely spending

·         If you can afford you can buy software to help with making budget

Check here http://goo.gl/hY487

This is another link you check out http://christianpf.com/how-to-make-a-budget/

BUDGET FOR MONTH OF	FEB ETC
Income	Amount
Salary after tax	xxx
Extra Income	xxx
Total  Income after tax	xxx
Expense
Tithe (for Christian folk out there)	xxx
Rent	xxx
Electricity	xxx
Water	xxx
Food Stuff	xxx
Yourself	xxx
Others	xxx
Total	xxx
Income minus Expense	xxx

    

This is how I make my monthly budget there several other budgets we shall learn about next time