If you’re reading this article, you are probably interested in looking for ways to control your finances. The best way to do this is to create a monthly budget and committing to it. Having a sound budget is essential for managing money, one that has allowed me to live well even on limited funds. One of the most crucial things that I do every month is organise my monthly budget, this has allowed me to consistently meet all expenses, grow my savings, and control debt.

I map out my budget for the coming month on about the 20th of the current month. This gives me a better view of my expenses in the upcoming month. It’s not a good idea to produce a budget after getting paid because, too often, that flush feeling of having a paycheck leads to uneccessary and impulsive spending before the paycheck ever reaches the bank.

Managing my personal budget involves outlining all the things that must be paid that month like mortgage/rent, utilities, and other necessities like insurance, car loan repayment, transportation costs, and phone. These are the things I have pay to keep a adequate roof over my head and carry on earning money. I like to pad these requirements to create “money back” after paying the bills and, if costs increase unexpectedly, I’m always covered.

Next, my budget is subjected to a list of discretionary things I need to cover but could live without if absolutely needed. These items may include monthly savings deposits, credit card repayments, and donations to charity. Don’t get me wrong, some of these things are also necessary, but in case of emergency they can be excepted. By giving credit card companies the maximum instead of the minimum, I keep my credit score high and my debt low.

My budget does not include the cost of living such as food and entertainment. These items get covered by what’s left over and that’s that. Some months involve lots of beans and rice, slow-cooker meals, free or cheap entertainment, and only one inexpensive piece of clothing . This strategy of handling my monthly budget has worked out very well over the long term as long as I honor it religiously.