Budgeting is one of the most important skills you need to know in order to achieve a semblance of financial success. But it can be difficult to do for many reasons. If you’re not the best with money or in a certain tax bracket, looking at your bank account can be one of the most painful things you can do to yourself. Maybe you’re in debt, live on an unreliable income, or just have no idea where to start. Regardless of what it is, there is an answer to your woes. Here are five steps you can take to start budgeting.
Look at your income
If you live on an irregular income, budget based on your lowest income instead of your average and work your way up as you earn more and more. But after you’ve taken into your income, deduct any automatic payments like taxes, insurance, debt repayments, rent/mortgage, etc. After you’ve made those deductions you’ve arrived at the income you’ll be working with for the month.
Look at your expenses
Keeping track of your expenses requires you to know what you’re spending on in the first place and this can be done in many ways. I personally keep all my receipts on my computer if it’s a digital payment or in a bag if it’s a cash payment and add up everything I’ve spent over the course of the month in a…
