In this tough economic situation recently, making up a budget in monthly manner becomes necessity. We do not have to be a financial expert to do the budgeting in good system. We do not necessarily hire a financial institution to manage the money spending and saving. There are many ways that are free and low cost system to update the checks and balances every month that can be done using the PC at home.
To start our own monthly budgeting, first of all, we need to be consistent. This is the main key of success in maintaining our monthly budget. The system will support our regular bookkeeping recordings and this will need a careful analysis between two persons that shares one income. If one misses the spending tracking then it will jeopardize the budget.
It is important to put one person to deal with the financial record keeping every month in order to avoid the confusion in relation with the available cash when asked at any given time. This will need a trust for each person to be honest to each other and it will benefit both parties involved.
To setting up a monthly budget, we should follow below steps:
Step one: Classify the amount of steady income every month and include the amount in a spreadsheet or software program
Step two: Follow every spending and write them down by using whatever means possible.
Step three: Track every items and put it into spreadsheet or software program.
Step four: Gather all bills transactions, payments, monthly dues, groceries, gas, etc and subtract them from the monthly income amount.
Step five: Take the left over and share it between the two persons as “spending money”, saving, or anything that can be decided between them. We should not be foolish and greedy, it is best and wise if we take the money aside for the unexpected events like car breaking down or the child is getting ill. We cannot predict what will happen after we spend the left over money for something useless or consumptive goods.