The expense budget helps you keep track, make projections and prevents your economy from being affected by unexpected situations.
To start, first define what are the most common expenses you have in the month, you can divide it by columns:
Now you have an idea of how much you spend in the month and in what things, to what you spend more money and you had not realized.
The next step is to organize all your expenses to avoid waste and to be able to make projections:
Consider non-recurring expenses. In addition to what you spend periodically, there are other things that are not presented each month, such as paying for registration, buying uniforms, school supplies or buying gifts for the birthday of a family member.
All of this must also be included in the budget. Do a review at the beginning of the month to check that you have not omitted anything.
Reduce what you can. Above all, try to minimize unnecessary expenses such as office coffee or meals out. You don’t have to eliminate them completely, but you can cut your consumption in half.
That money that you save can go to other objectives, such as savings, or leave it for an unforeseen event.
Set aside an amount for entertainment. At this point, the most important thing is that you are clear about how much you are going to spend with your family or friends, for example, and try to stick to this budget.
If the amount you had contemplated has already been exceeded, try to exchange activities. For example, a meeting at home instead of going out to dinner with friends, or a picnic in a park, instead of going to the movies with the family.
The objective is that you avoid exceeding yourself in these types of expenses and that they begin to affect your monthly budget.
Set aside something for the unexpected. There can always be expenses that you did not have contemplated, such as the repair of the car or some damage at home.
To prevent these types of things from affecting your economy or having to go into debt to solve them, set aside an amount each month to deal with them .
If you did not use it that month, you can leave it for the next one and add a little to it, but avoid spending it on other things, especially if it is not necessary.
Now you know how to spend wisely each month, avoid losing track of your money, this in the long term will allow you to achieve other goals such as saving or finishing paying your debts.