{"id":2724,"date":"2018-12-20T13:01:31","date_gmt":"2018-12-20T20:01:31","guid":{"rendered":"https:\/\/lendingarch.ca\/?p=2724"},"modified":"2018-12-20T13:01:31","modified_gmt":"2018-12-20T20:01:31","slug":"create-perfect-monthly-budget","status":"publish","type":"post","link":"https:\/\/bestlendersfor.ca\/create-perfect-monthly-budget\/","title":{"rendered":"How to Create the Perfect Monthly Budget"},"content":{"rendered":"

Every year you tell yourself that you’re going to improve your finances. Then life gets in the way and you find yourself in debt – again. Not this time around. This is the year you\u2019re going to create a monthly budget<\/strong> and stick to it.<\/p>\n

Now that you\u2019ve made this important financial decision, you’re probably wondering what to do next. Should you set up a money saving app<\/a>? Should you start listing out your expenses? The answer is yes, and yes.<\/p>\n

But, before you get overwhelmed with creating a monthly budget, it\u2019s important to understand your cash flow – both in and out every month. From there, you can craft the perfect monthly budget.<\/p>\n

Regardless of whether you use a budgeting app, like Mint<\/a> or You Need a Budget<\/a>, a spreadsheet, or even an old-fashioned notebook, here are some steps you can take when creating your monthly budget<\/a>.<\/p>\n

1. Figure out your income<\/h2>\n

Ok, if you get a paycheck, this seems pretty straightforward. But if you\u2019re a freelancer or you have a side hustle in addition to your salaried job, you may have to sit down and take a good look at your bank account.<\/p>\n

For starters, make sure you see exactly how much money is deposited into your account each month. Also, remember to factor in your take-home pay, after any taxes and other deductions. Then, to see your average monthly income, especially if it fluctuates, add up your income for the last 12 months and then divide that amount by 12. This will give you a workable income for your monthly budget.<\/p>\n

Your monthly income is perhaps the most important step in building your budget. Why? Because you have to know how much money you actually have in order to figure out how much you can spend. For example, you can\u2019t spend more than you earn – otherwise, you may find yourself in debt.<\/p>\n

2. Figure out your expenses<\/h2>\n

Your monthly expenses include both fixed costs, as well as other fluctuating bills and expenses. Fixed expenses<\/strong> are bills that you generally pay every month in the same amount. Here are some of the common fixed expenses that you may have:<\/p>\n