A budget is a great way to keep your finances in order – it’s a detailed monthly plan that shows exactly where your money is coming from, how much is in your pocket and where you are spending it.
Creating a budget can help you quickly pinpoint common pitfalls such as overspending. Despite what you might think, a budget does not have to be restrictive or overly impact your lifestyle. It should incorporate realistic, short and long term financial goals and by incorporating your spending and saving into a budget, so you can achieve them.
The basic steps of setting up a budget remain the same, whether you prefer to use a pen and paper, or a budgeting tool.