Finance expert explains how to create an effective budget no matter what your income is

Creating a budget is a unique experience and should be based on your own earnings and outgoings, not on what others are able to save!

Tracking income is the first step to creating a successful budget. 

This should include your annual salary including bonuses, any income from side hustles or freelance work, and any benefits that you may receive.  

You should then compile a list of all your potential monthly expenses. 

This will include rent or mortgage repayments, groceries, utilities and other bills such as phone and Wi-Fi bills, subscription services, leisure and transportation expenses. 

From this, assign a specific amount of your salary to each expense. 

Prioritise the essentials and don’t forget to factor in savings. Ideally, you can save a portion of your annual salary – around 10-20% is a good amount to aim for. 

Be sure to consider financial goals or future big purchases that you’re building towards, as you may want to set aside more money for these.  

Try using spreadsheets or budgeting apps to help track your finances. 

Nina Appelgren says: “Some people may opt to create their budget manually, or some may prefer to rely on technology – regardless of your preference, there are many tools at your disposal that can help you. 

“Remember, you can adjust your budget whenever you need to, or whenever your financial circumstances change.”

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