A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a group of people, a business, a government, or just about anything else that makes and spends money.
When budgeting you need to focus on the necessities, focusing on the stuff you need is much important than the things that you want, I know that this may be obvious but I felt like I should add it anyways. The most important things when budgeting are
- Utilities
Your cost of utilities combines bills that are useful to your homes such as water, electricity, gas, internet, cable, telephone, and trash pickup. Keeping track of how much you are paying for each can show you if you are paying too much and point you in the direction of making applicable modifications with your primary bills.
- Groceries
Eating is a necessity for humans. The grocery group should include all breakfast, lunch, dinner, snacks, and drinks. Budgeting for food can make a huge difference by planning your meals ahead of time.
- Housing
Having a shelter is important and rent can usually take up a big chunk of your money. Budgeting for housing can help you decide if you are staying in an economical place that is affordable with your income.
- Insurance
Auto insurance, health insurance, and life insurance are everyday coverages that you need to protect yourself from when damages, illnesses, and losses occur. Budgeting your insurance can shield you from paying larger amounts of money than you need to when something unexpected happens.
- Personal Care
Taking care of yourself is necessary to live a good life. Putting some money aside for entertainment, relaxation, and items that contribute to making you feel complete can put some self-made sunshine in your life.
Use this to plan your budget https://sorted.org.nz/#/tools/budgeting-tool
I learned a little bit more about budgeting after writing this blog post, so by teaching you something I was able to learn as well.
Is there anything else you would like to know about budgeting?
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