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Making a budget

The best way to guarantee your financial health is to make a budget Budget: Complete list of all the estimated spending and income of a business or an individual. . You can use it to keep your expenses in line with your earnings and achieve your objectives over time.

Why do I need a budget?

When money is hard to come by, it's essential to carefully manage your finances. The best management tool, hands down, is a budget.

Making a budget will help you:

• understand your actual financial situation
• pay your day-to-day expenses
• gradually achieve your objectives
• determine your true needs and interests
• limit your indebtedness
• save

How do I make a budget?

Coming up with a framework for managing your finances will require a bit of effort. Follow these 5 steps and try to be as realistic as possible.

1. Set your financial objectives.
   Your objectives should be realistic, measurable and time-bound.

2. Calculate your monthly income.
   Include your salary or pocket money, any student loans, allowances, interest on investments, etc.

3. Calculate your fixed and variable monthly expenses.
   Include all expenses and set a precise amount for each one.

4. Compare your budget with your actual expenses.
   You should take the necessary steps (e.g., increasing your income or reducing your expenses) to make the two balance out!

5. To achieve your goals, stick to your budget and alter it if necessary.

How can I manage my budget?

Making a budget is a good first step, but it's even better to follow it!

9 tips for making a budget that will stick:

Simple: Your budget should be straightforward. Keep it simple, so it's a pleasant task, not a discouraging one.
Flexible: Your budget should be flexible so you can easily modify it to reflect any change in your income or expenses.
Honest: Be honest with yourself. You won't win by cheating!
Realistic: Be realistic. Compare your present expenses with what you can actually afford to spend.
Organized: Be organized and keep your documents properly filed away. You will save time and avoid misplacing important papers!
Prepared: Allow for unplanned expenses so you won't be caught short when they crop up.
Occasional: Remember to factor in occasional, annual recurring expenses, such as Christmas gifts, insurance policies or driver's licence.
Eliminate: Think about how you can save every day by eliminating non-essential expenses if your budget is too tight.
Reward: If you've managed to save by following your budget, reward yourself!