Topic: The steps to follow in creating a budget - page 3. (Read 710 times)

This is a completely logical approach.

I think this is the most important factor determining the type and method of creating a budget. On this basis, I would like to delve a little deeper into this point, considering that the size of income versus the size of expenditures can determine the size of the budget that can be created at a given time. This requires a basic condition, which is the presence of surplus income to enter into saving (according to a precise plan) and the size of the budget that can be obtained be clear.
This leads us to consider that the more revenues exceed expenses, the easier it becomes to plan to create a budget. It becomes easier if we adopt what investors call “diversifying sources of income,” because often someone who has one source of income (even if it is fixed) cannot balance it with expenses in order to be able to develop a plan to create a budget.

Marry Christmas and happy new year.
 It comes to me to share my knowledge with others, but I am sure some might know the steps in creating a budget, but it might be that they are not following it effectively. I hope if I share such knowledge, it will help a lot, especially in the season we are in now. I know that as we have already celebrated Christmas, we have spent much of our savings, which we are still going to spend more on when it comes to the New Year celebration, so I take this as a reason to share such information with others so others will not suffer, especially after all this celebration, so I will list and explain the steps in creating a budget.
 
The steps in the budget include

1. Determine your income: As the first step in creating a budget, you have to know your total income in terms of what you can afford. Do not write a budget that is more than your income and end up not achieving anything at the end because your income determines your budget, so let's take note of our income first. This income might include your weekly,monthly, or even yearly income, as well as side hustles and any other source of income.
 
2. Identify where your money is going: The second step in creating a budget is to track your expenses. This is also very important because, without knowing how you usually spend your money, you will end up writing a budget that you can’t even stick to. More over, expenses include housing, transportation, food, entertainment, gambling, and so on. When you have identified where your money is going, you can categorise it into groups. For instance, clothing, house rent fees, and others should all be in the category of housing. If that is done, you have definitely achieved your second step in creating a budget.
 
3. identify or set an achievable goal: This is the third step in creating a budget when you have identified your income, tracked your expenses, and categorised them. Why I say achievable goal is that you have to set a goal that you can achieve either long-term or short-term. For instance, you might save money in order to pay your debts, invest the money, or even pay for housing and any other expenses, such as buying valuable and usable items that won’t be a liability to you.
 
4. Start creating the budget or priorities for your expenses: This is the next step, for me. This is the step where you will start writing the budget. It is not that you won’t write those other steps I mentioned earlier; you will also write them, but this is the stage where you will allocate some amount of money to the categories that you have created at the second step, and you have to make sure that it aligns with your priorities. After allocating a certain amount of money to those categories, you should make sure that you keep some of it as emergency funds; it is also important.
 
5. Review the budget; in some cases, I mean monitoring, evaluation, or adjustment of the budget. This is like the final stage in creating a budget, although this stage is a continuous process because this stage never comes to an end unless you have purchased all that you have put in your budget to achieve this process, including regular adjustments as needed to accommodate and adjust your budget. This is done in case something comes up, such as the use of the emergency fund that you keep as a category for things like an increase in the price of what you intend to buy for medical expenses, which might be an emergency, and many others. In this step, you must track your budget very carefully and with caution to make sure you have achieved it.
 
The steps I have listed above are the ones I follow whenever I want to write a budget. You can change this step in many ways. For instance, a gambler can use it, but it will be more effective with the amount he needs for the gambling, and he should make sure he follows the track, so stick to the budget to avoid the source of unusual spending.
 

Without proper budgeting, all successful businesses are doomed to fail. That is already expected much more to those high rising businesses where extreme budgeting is a must. If you fail on that, the whole concept of business will fail as well. So put budgeting as the topmost priority when aiming for success and long term profits.

However, budgeting can always be learned if you have the eagerness to study on it. Sometimes, it takes losses at first before you will see the high importance of budgeting, and that's normal as long as you also learned your lesson.

Borrowing money just for additional needs such as for Christmas will only add new problems and after the Christmas holidays are over there will be lots of bills that will make us have to work even harder. spending something must be adjusted to financial capabilities so that there will be no such thing as a shortage of funds, everything must be arranged so that the available funds must be sufficient.

Like they have said that he who didn't plan has already planned to fail and this is why we have some businesses springing up but they are not succeeding because of lack of proper guide and management. Budgeting is one of the leading factors to business and it growth.

A business person who knows what he is doing, would take stock of his business from time to time and make plans to growth it. Businesses are not handled into success for the lack of proper budgeting, even the government budget on how to carry out his capital projects and recurrent expenditure. Budget determines how far the business will grow or how soon it will crash also depends on lack of proper budgeting.

It's a good tip you made about budgeting, because this is usually the problem for most communities, not only in the crypto space but also in people's traditional lives. There are many people who have money but are not able to handle it properly.

So, this is something that others should know, so this topic you made can also be a guide for people who want to learn how to handle their budget correctly. So thank you for spending the time just to share this here.

I agree, people these days be freestyling their daily budget as if they are just picking up their money on the floor. Budgeting should be realistically set using the common sense, living without a daily budget is like living in borrow time.

Diversifying is the best way to counter or align your budget, do not settle for one source of income, try to explore more rooms where you can generate profit even it is a small business or lesser income than your main source. I don't think it is hard to find, well maybe it is at first but once you find it, you can prolong it or best you can add more to it. Luxury these days doesn't apply to all, if you can't afford don't buy it, it is a very simple logic.

The steps I have listed above are the ones I follow whenever I want to write a budget. You can change this step in many ways. For instance, a gambler can use it, but it will be more effective with the amount he needs for the gambling, and he should make sure he follows the track, so stick to the budget to avoid the source of unusual spending.

Sometimes people make budgeting as if one needs a rocket science degree in order to do it right. I think budgeting is very simple. It's probably just a matter of common sense.

Avoid an unnecessary lavish life. That's it. If you are still having a hard time budgeting what you have despite living a simple life, then that means you need to find ways to increase your income. Now, that's probably the harder and complicated part.

Everyone has different financial levels based on their daily income or monthly salary, although discipline in following these rules will not achieve maximum results. For example, if their financial level is low, maybe they set aside some of their income for emergency savings every week or month, but emergency savings will also not meet the required budget.

However, at least those who have implemented financial management rules will be useful in the future, even though they cannot fully cover emergency needs if an unexpected event occurs but already have part of the budget for emergency needs.

The steps I have listed above are the ones I follow whenever I want to write a budget. You can change this step in many ways. For instance, a gambler can use it, but it will be more effective with the amount he needs for the gambling, and he should make sure he follows the track, so stick to the budget to avoid the source of unusual spending.

However, some instances may prevent us from following these rules. Unpredicted events may suddenly happen and yet our budget cannot cater those emergency needs, hence we end up crossing the rule and touching the budget we're not suppose to use. But if we have saved emergency funds, I think our budget will not be put into compromise. There should be different budget funds that we need to consider, and sticking to each budget will make us live stress free and happy.

It takes discipline to make a budget works. Otherwise, your budget plan will be useless since you're not even following it in the first place. Patience and discipline are the keys.