Create Your Budget
Using the information you’ve gathered, design a budget that reflects your income, expenses, and financial goals. A popular method is the 50/30/20 rule where 50% of your income goes towards necessities, 30% towards wants, and 20% towards savings and debt repayment.
Track Your Spending
Keep close tabs on your spending. Every expense, no matter how small, should be recorded. This can be done through budgeting apps, spreadsheets, or even a traditional ledger. Tracking helps you identify spending habits and adjust behaviors that might be causing budget overruns.
Review and Adjust Regularly
Your budget is not set in stone. Review it regularly—at least once a month—to check if it still suits your needs. Be flexible and make adjustments as necessary, particularly if you experience significant life changes like a job transition, a new family member, or an unexpected expense.
