The first step in taking charge of your financial situation and making your money work for you is developing a healthy budget. You can use the money to pay off debt, put money into savings, and feel more relaxed and less anxious. 

Budgeting doesn’t always have to mean spending less; sometimes it just means prioritizing the important things before treating yourself.  

By keeping track of your income and expenses each month, you may learn to manage your money effectively and achieve your goals on schedule.


Create a budgeting spreadsheet. You can create a simple spreadsheet using Google Sheets or Excel. Make a spreadsheet that shows all of your information clearly so that you can immediately find any areas where you may spend money more wisely. 

List all of your fixed expenses. Fixed expenses are the things that you pay the same price for every single month. This could be your mortgage, rent, some utilities, student loan payments, or a car payment. 

Also, write down your variable expenses. These are the ones where the monetary amounts might change from month to month. These are usually the areas that are easy to cut back on if you are trying to save money. And of course, compare your expenses to your income. 

To make your monthly budget, add up the total amount of money you spend every month from fixed and variable expenses. Then, subtract that amount from your monthly income.


Pay all of your expenses first. Before you get into saving money, make sure that you are paying all of your bills. There is no point in saving money if you still have outstanding bills to pay. Also, put your excess money toward a specific goal. You can put it into savings, pay off debt, or add it to a college fund for your kids.

 Make sure you know what you want to do with your extra money so you can make a plan. And if you want your salary to be spent effectively, adjust your habits if you are overspending. If you calculated how much money you have left over at the end of the month and it is not much, you may need to adjust your spending habits. 

Try spending less on optional items, like clothing, entertainment, and going out to eat. Instead, set short-term goals to achieve within 1 year. This could be done within 12 months, and they should be specific and actionable. 


Treat yourself periodically, but within reason. Your money has to work for you, not the other way around. You don’t want to feel like a slave to your budget, or to money in general, so it is important to allow yourself a small treat every month that won’t break your budget. 

Also, pay off your debt every month, if you can. If you use your credit cards or have student loan debt, you should try to pay off at least the minimum amount every month to avoid high interest rates. If you cannot pay off the current balances, prioritize paying them off within a reasonable time period so that you can get to zero balances. 

And lastly, keep money in savings for emergencies. You can never plan for emergencies, and they can destroy your budget if they catch you off guard. 

Try to set aside some money every month in case your car breaks down, you need medical care, or you lose your job. That way, you’ll have a cushion to help you out.

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