Question

Instructions Essay: How to plan a budget

Answer 1

How to plan a budget

To have a healthy financial background, a proper budget plan is needed. In order to achieve set financial goals,a proper planning is essential.Budget planning is done to check the income and expenses and to forecast the future financial intake and out takes. Here is the way how you can plan an appropriate budget.

First,begin your budget plan by calculating the expenses.The money spending  for each month should be calculated.An average of six months to one year payments should be taken to get a clear idea of the expenses on your way.Then,analyse your real income.The money required to move on each month need to be drawn up.Additional income through gifts,sale of any items should also be added to the real income.

Next,shortage of money or over capital ever came across during the month,should be reviewed.Savings and cash obligated to pay should be identified.If your expenses are more than your income,cut of the expenses there itself,to prevent debt.If it is difficult to cut off the expenses,ways to increase the income need to be considered.Then,document all your income and expenditure.

You then elucidate whether the income-expense track is on the right way.Be practical in implementing the plan which will be helpful in meeting financial goals.