SELF IMPROVEMENT

what is budgeting
Budgeting is the process of gaining control over the use of every dollar you earn. It is the process of striking a balance between income and expenditure. When creating a budget:
2. Estimate fixed expenses: You may have fixed expenses each month like your rent or mortgage, utility bills, car payment, cell phone etc. Ideally, you should set aside 10% of your income as savings.
3. Next estimate variable expenses: Variable expenses are items such as travel, dining out, entertainment, groceries, clothing etc. It is in this category that there a big opportunity for money management and finding new money, especially when it comes to cutting down expenses.

4. Then evaluate your income and expenses: An important task of budgeting is to evaluate whether expenses are within your income. If expenses do not match income, you must make cuts in your expenses, start with your variable expenses and you'll be surprised on where you can cut back. If you're living within your income, you will have a surplus of income over expenses, and this extra money needs a place to go.
A necessary part of budgets is an emergency fund, 3-6 months of your gross income (total income earned before any taxes and deductions). Cash is king, or so the saying goes - use cash for budgeted items and avoid purchasing goods with credit cards.