If you are reading this, you are likely interested in looking for ways to control your finances. Preparing and sticking to a monthly budget has always been one of the ideal ways to do this. Having a solid budget is important for managing your finances, one that has allowed me to live well even on limited funds. Organising my monthly budget is one of the most critical things I do every month, this has allowed me to consistently meet all expenses, grow my savings, and control debt.

I map out my budget for the coming month close to the end of the month. This will prepare me of what’s down the road. It’s not a good idea to prepare a budget after getting paid because, too often, that flush feeling of receiving a paycheck results to nonessential and impulsive spending before the paycheck ever reaches the bank.

Start your personal budget by determining all the things that must be paid that month like rent, electricity bills, insurance policies, loan repayments and telephone bills. The main idea is to apportion a budget for the affairs that I must pay to keep a comfortable roof over my head and continue earning money. I like to pad these essentials to create “money back” after paying the bills and, if costs increase unexpectedly, I’m always covered.

Next, my budget is subjected to a list of discretionary things I need to cover but could live without if absolutely needed. These items may include monthly savings deposits, credit card repayments, and donations to charity. These things are also important, but in instance of emergency I could put them off for a short time. By giving credit card companies the maximum instead of the minimum, I keep my credit score high and my debt low.

My budget will not include the cost of living such as food and entertainment. These expenses get covered by what’s left over and that’s that. Some months involve lots of beans and rice, slow-cooker meals, free or cheap entertainment, and only one inexpensive piece of clothing . This strategy of handling my monthly budget has worked out very well over the long term as long as I honor it conscientiously.