A good budget will show you whether you are spending more or less than you can afford, so you can remain on top of your bills and start putting money towards your future goals.
With Pacific Professional Accountants, setting up a budget is not a difficult step. We will guide you at each and every step. These are few things which need to be considered while planning your budget:
- Estimate your current income: The first thing is to consider the exact how much money you’ve got coming in. You just need to consider your pay slips or bank statements.
- Working out your expenses: Now you get a clear idea what you have got in, the next step is to estimate where your money goes. A simple way is to look at your transactions and credit card statements and track your expenses for a month or so.
- Do calculations: Now you know exactly how much amount is coming in and how much is going out. Perform some calculations and calculate the difference between the your incomes and expenditure.
- Manage your time: Your aim should be to have more money coming in than going out and to have enough to save for short and long term goals. It's also a good idea to put some aside for the unexpected in an emergency fund.
- Be realistic: Living to a budget is not a ‘crash diet,’ it’s a healthy balance where you shouldn’t deprive yourself or over-indulge in spending.