Budgeting is a crucial tool, but it might only work if you make a new budget every month!
Why? We never really have the same expenses each month. While we always pay rent or a car payment, what about those special occasions that aren't included? Here's how to start upping your budgeting game.
#1: Last Month's Budget
Look at your budget from the previous month. What have you already paid? For example, if you paid off your credit card balance, give yourself a pat on the back and cross it off as completed. Only bring over fixed expenses – things you need to pay every month like WiFi, rent, or groceries.
#2: This Month’s Budget
This month could potentially look a lot different. You might have more expenses, like a birthday or holiday. Total the amount you plan to spend on each one-off festivity or expense, and put it into this month’s budget.
#3: Prioritize
Lastly, list all of this month’s expenses in order of priority. Make sure your important bills are paid first. This leaves you enough for whatever you have planned – in case an emergency arises, your essential payments have already been made.
New expenses can come up all the time. One size budget does not fit all – make sure you’re updating your budget every month to make sure it still fits your needs!