Making a home budget is a key part of a strong financial foundation, as every great financial plan starts with a reasonable budget.
Having a budget can help you manage your money, control your spending, save more money, pay off your debt or avoid it.
Literally, this means that budgeting is the first step in making your financial goals a reality.
Often, it has to do with how much money you make, and with the job you have, because proper money management doesn’t involve magic formulas to find more money, but just means getting the most out of the money you have.
Research shows that those who manage finance are responsible and feel at ease and know how:
- Pay for living expenses
- Keep debt at a manageable level
- Besides the extras to make life happy
- Avoid constant money anxiety
Many people experience the usual emotions when they don’t know how to do well, especially when money is involved. Some of these feelings may include:
- frustration
- guilty
- envy
- anger
- shame
- disappointment
You can create budget worksheets and even use paper and pen to outline your budget, just capture all the necessary information for the budget guide you created.
Now, let’s discuss in detail how to overcome these feelings by appropriate funding management starting with setting a budget:
1. Overview of your income and its resources
The first is to list your income and its source. This is a problem, for example:
1) How much money do I actually make at the end of every day, week, month, or year? Depending on your payment method, but in this article, we will use “monthly income” as a case study.
2) What are the sources of these incomes, are they regular or irregular sources of income?
3) How much money am I willing to spend from my monthly income to clear the borrow without being affected?
At the same time, when formulating a budget, it is strongly recommended that only add up all reliable sources of income: work, a maintenance fee, child support fee, etc.
Pay attention to this word Reliable. If you sometimes get cash from external work or hobbies, but this is not regular, don’t put that money in your budget. Your budget should be the document you can rely on.
If you are self-employed or have a fluctuating income, use an average monthly income or an estimate of the income you expect to earn in a particular month.
Please read also: Lack of working capital can hurt your business
2. Calculate your expenses Budget for your family
Now, analyze and calculate all expenses for your household budget and other expenses here. Some of your monthly expenses are fixed, such as: mortgage/rental, property tax, child support, etc., while others may vary, such as electricity, water and groceries. List all fixed fees and fee amounts.
Since some expenses are intermittent, such as insurance payments, if you calculate the average of six months to one year, you will get the most accurate financial position.
Add up everything you’ve spent in the last six to 12 months and divide by the number of months, which will give you an average monthly fee.

You also have to consider unexpected bills so that you can be thorough and thorough when added up so that you can create a realistic budget. Forgotten bills do bring a wrench to your savings plan.
So, when calculating your expenses, you also consider unexpected bills, such as unplanned car repairs. You can add an additional 10% – 15% as other cases of these unexpected expenses.
So if you determine that you are spending $1,250 per month, add $125 to $187.5 to the total amount.
3. Calculate your net income
Your net income is the total amount left after paying all bills. Congratulations if your results show that you are making more money than you spend.
This amount can be specified to save and repay debts. You can calculate net income by subtracting expenses from monthly income and writing down the quantity, even if it’s negative…
But if your results show that you spend more than you spend, it’s time to make some cuts so you can save something without having to pay off your debts anymore.
4. Adjust your fees
If your previous result was negative, this is your next action. You need to adjust the fees to suit your income and even have some savings left.
Try to determine you by distinguishing your “needs” from your “needs”, reducing or eliminating spending in these “wanted” areas, thinking you “need” to spend more money and spend more space. Which of these items listed previously is trivial.

Variable fees are usually the first place you can adjust your expenses, such as dining out, hobbies and entertainment. Even some of your fixed fees can be adjusted for some of your fixed fees by reducing cable or phone bills, canceling your gym membership, or not taking a vacation this year.
Please read also: 10 Smart Ways to Promote Your Business
Once you have a clear idea of where all the money goes, keep cutting your expenses until the budget goes black. Cut enough time so that 10% to 20% of your remaining income per month can be added to your savings account.
In situations where you can’t cut enough amounts from your budget, consider ways to increase your revenue.
5. Record and track spending progress
The best way to keep your budget at its best is to record all expenses and income. Having to enter a fee will cause you to think twice before splurge and is especially satisfying and motivating when you reach your savings goal.
Throughout the month, track your actual expenses versus your budget expenses. If you pay your family budget from time to time, it will help you figure out where to spend more money.
In the future, you can be more careful not to overgrow the field. Alternatively, you may need to adjust your budget to compensate for additional expenses. If you increase your household budget in one area, reduce your budget in another area to keep your budget balanced.
Stay realistic most of the time and aim to stick to your budget and you will surely achieve your financial goals. It is OK to occasionally violate your family budget, as long as you get back on track as soon as possible.
Related: Golden Rules for Target Settings: – Five Rules for Success