UND-Pilsa Blog

If you are reading this, you’re most likely going through slight financial stress and seeking for a way to gain control of your finances. Producing and committing to a monthly budget has always been one of the best methods to do this. Having a solid budget is essential for managing your finances, 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 usually plan my budget for the upcoming month towards the end of the month. This gives me a better view of my spending in the upcoming month. It’s not a good idea to develop a budget after getting paid because, too often, that flush feeling of having a paycheck results to unessential and impulsive spending before the paycheck ever reaches the bank.

I start my personal budget by listing all the disbursements that must be paid on time like, mortgage repayments, utilities, insurance payments and car loans. The overall idea is to apportion a budget for the affairs that I must pay to keep a comfortable roof over my head and carry on earning money. I like to pad these essentials to make “money back” after paying the bills and, if costs increase circumstantially, 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 necessary. An example are monthly savings deposits, credit card repayments and donations. These things are also necessary, but in case of emergency I could put them off for a short time. 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. Ultimately, these items get covered by what’s left in the budget. 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 managing my monthly budget has worked out very well over the long term as long as I observe it religiously.