How to Make a Budget in 5 Easy Steps
June 2, 2021 | Peyton Sawyer
Budgeting can be a scary word if you don’t like math or don’t know how to make a budget.
However, if you are starting a new job, preparing to buying a house, or realizing that it is time to start saving for your nest egg, knowing how to make a budget is going to make a huge difference.
Even if you have never budgeted for anything before and the idea is completely new to you, getting started is quite simple.
Check out these five easy steps to learn how to make a budget to get you one step closer to your goal, plus a simple tip for using payday loans when you need help.
5 Easy Steps to Budgeting
Step 1: Calculate Monthly Income
The first step is to calculate the total amount of income you receive each month. It is important to calculate the income after taxes, as these will be the available funds that you can use to pay for expenses and add to your savings.
If your income varies each month, you can get a decent estimate by looking at your income for the previous six months.
Step 2: Calculate Monthly Expenses
After you have your income, the second bit of data you need in the process of figuring out how to make a budget is your monthly expenses.
Monthly expenses include any required spending each month. Think about rent or mortgage payments, utilities and other monthly services, cell phone bills, internet, and cable or satellite TV, insurance, and car payments, just to list a few. This does not include spending on wants and desires.
Step 3: Calculate Other Expenses
Once you have calculated the reoccurring required expenses, you will need to look at grocery bills, how much you spend on entertainment, and how much you spend on gas for your car each month.
These numbers will fluctuate each month but getting a general idea of what you spend on average will help you to figure out how to make a budget that works for you.
Step 4: Set Your Goals
Once you know how much you earn and how much you usually spend each month, you have to set reasonable goals for your current financial situation.
If you are currently earning $40,000 per year and you set a goal of saving $100,000 in the next two years, this is not a reasonable goal because you don’t earn that much.
However, setting a goal like putting aside $100 each month to go towards your retirement is a reasonable goal if you earn $3000 per month and your monthly expenses are only $2500 per month. The most important part of knowing how to make a budget and stick with it is setting achievable goals.
Step 5: Set Your Limits
Once you have finished crunching numbers and setting goals, you have to sit down and set limits on how much you spend. There are different ways of doing this.
If you prefer cash, you can divide it up into envelopes. As for cards, some bank accounts allow you to divide your money up by category. You can use an app to help you learn how to make a budget or just make a spreadsheet and write it down.
What If I Need Some Help?
If you are new to budgeting and still trying to learn how to make a budget and stick with it, you may find yourself in need of some financial help. You may find yourself with late bills and no money to spare since you haven’t had a chance to save money just yet. If that is the case, there are options out there so don’t feel like you’re alone.
Find out more: How Much Cash Could You Get From A Payday Loan?
Payday Loans With Fast Payday Loans, Inc.
Florida payday loans are essentially cash advances on your next paycheck. This can help you when you are in a financially sticky situation and need cash quickly. Fast Payday Loans, Inc. works to help you get the cash you need when you need it.
Advantages of Payday Loans
The main advantages of payday loans are that they are quick and easy to apply for, you can get them with good/bad/no credit, and as long as you have proof of employment or non-employment income, you will most likely qualify.
How to Obtain a Payday Loan?
Getting started with a payday loan is quick and easy. All you need to do is fill out the online form at Fast Payday Loans, Inc. or visit one of our stores near you. Make sure to have a government-issued ID such as your driver’s license, the last pay stub you received, and a blank check for your personal checking bank account.
The process usually takes less than 30 minutes and you can get your money as soon as the very same day.
What About Credit Checks?
While there may be a credit check when you apply for a payday loan, it isn’t a major factor for your qualification. Fast Payday Loans, Inc. works with all types of credit to provide you with the help you need.
What Is The Best Way to Use Payday Loans?
Generally speaking, we advise that payday loans be used for emergencies only. This can include things like unexpected home or auto repairs, medical bills, or unexpected necessary travel.
Learning How to Make A Budget Is Simple
If you are still struggling to figure out how to make a budget, start with our steps above and see where they take you.
But if you already made a budget but you’re struggling to stick with it or unexpected expenses have left you needing help, getting a payday loan can be an option to consider.
Fast Payday Loans, Inc. can provide you with a payday loan to help get you through to the next paycheck or at least until you figure out a budget that works for you.