You will first complete the "Monthy Budget Amount" column to the best of your ability for the next month. These should be your best, informed estimates. Should a certain category not apply to you, you can simply leave it blank or enter a zero Ɔ' in the box. Over the course of the month, track your income and spending. At the end of the month, complete the "Monthly Actual Amount" column and compare it to your original estimates. Did you overestimate how much you'd spend on clothing, but underestimate the amount you'd spend eating out? Record the difference. Though you do not need to go through this exercise every month, it is extremely helpful at the start as it helps you to develop the most accurate monthly budget to reference moving forward.
Make Sure to Trim Your Taxes. Nobody likes paying taxes, but they are an important aspect of any financial plan. Even if you don't make much money, you might be surprised to learn how certain tax strategies and decisions can impact your finances. Learning how to minimize the impact that taxes have on your finances can ensure that more money is going into your pocket and being put to use towards your financial goals.