Think of one budget as another.
Creating a budget somewhere in a spreadsheet is most effective – be it Microsoft Excel or Google Doc. Add your income and then you add new expenses as expenses.
And those new costs will definitely pop up. Sometimes try to plan as much as possible for expenses, such as holiday gifts, or the trip you plan each year – or an unexpected doctor’s appointment.
The more you track your expenses and keep an eye on it, the better you will understand your expenses each month.
Watch this video for a step-by-step guide to creating a budget that will work for you.
More from your investment:
Leisure is expensive – here’s how much you need to save for it
Here’s how to invest your money if you save for your next vacation
Here’s how you can save up to 500,000 for retirement with an annual salary of $ 35,000
Register: Money 101 is an 8-week learning course for financial freedom, delivered weekly to your inbox. For the Spanish version, Dinero 101, click here.
Check out: This teen has got about 100 classmates to join an investment club and raised $ 120,000: Here are his top tips for getting started with Acorns + CNBC
Disclosure: NBCU Universal and Comcast Ventures Investors Acorn.