So you want to keep track of your money and have better spending habits?
Everybody has told you that you need a budget. But where do you start?
Let’s start with your bank statements.
Start by taking a look at the money coming in and going out of your accounts. Get your last three months of bank statements.
Put your income into categories to see where your earnings are coming from. Then put your expenses into categories to see where you are spending your money.
By having categories, this will help you work out where you are earning and where you are spending your money each month.
If you want to have more savings, what are you going to do next month to change things?
Are you going to work more hours or take on an extra job to increase your income? Or are you going to reduce your spending on items such as eating out or clothes shopping next month and save that money instead?
Write down your plan for next month, and be sure to stick to it.
Congratulate yourself as you have just created your first household budget.