Make the most out of your income with this simple personal finance budget tool

A good and steady income is one of the vital point for a stress-free and joyful life. As the saying goes “Money is not happiness, but money can buy you things which can make you happy.” Whilst doing it, you may ignore to track your personal finance or expenditure. At the end of the month or the end of the year, when you check your bank accounts, you might wonder where did all the money go. You know you should have had money in the bank, but the money is not there! It leaves you all worried and drains you mentally. 

In this case, a proper management of personal finance is the best way to achieve personal economic satisfaction. Your future finances might or might not go as you planned. However, with proper planning and management, you can have a better ground in times of financial crisis or breakdowns.

Finance management is a strategic procedure which involves careful approach and planning.

Things like retirement, a good education for your children, or buying car or homes would work perfectly if you have a clear picture of your finances.

Here are few things that can get better your personal finance :


Net Income

The first step in creating a personal finance budget is to pen down the total amount that you make in a month/year. You can make it by adding all the income that you make from your part-time and full-time jobs and money that you make from rent or leases or any other investments that you make.

Some of them can be monthly and other incomes like investments or leases can be on a monthly or yearly basis. Once you do it, cut down the taxes, insurances, and other deductions. It will give you the total net budget for month/year.



A clear plan of your total expenses is the foremost thing to consider. Take a note of the amount that you will be spending on your rent, bills, groceries, and other things which are a must. Prioritize the list into two or three groups.

In the first, you can write down things like your rent, groceries, and bills which are a compulsion. Include things like mortgage, or other loans in the second. For the third, write down things which you want but are not a compulsion like a gym, gadgets, eating outside, or going out for drinks.

Keep all the things like vacations, attending events, or buying cars or other expensive items in the final one.

Now with the list in hand, you will have a clear idea of the budget spending for every month.

It is the time you start looking out for your long-term plans. If you just started working you may have planned for a home. If you are married and have children then you might have plans for a good education for them. Or just a peaceful life after retirement. Write down all these things on your final list.

Paying off the bills on time will save you from additional charges or penalties.


Review and modify

You’ve managed to create a personal finance budget with a clear picture of monthly expenditure and savings. But, sticking to the budget is somewhat difficult but completely possible.

So, sometimes, the expenditure can go higher or lower than your planned budget. If you are spending on something which you think is important in a month just try and adjust it by cutting down the not so important expenses.

In this case, reviewing your budget on a monthly basis helps you stay on track. If your income is growing then you may add other little things which fit your new net income.


Clearing the bumps

If you have great savings every month, then you can consider clearing some of the hefty burdens. If you have any EMIs or loans or debts, then you may clear off by paying the principal amount. It will remove the stress on your shoulder and also help you in saving more money in the future. By paying off early, you will also be able to cut down the interests.

If you don’t have any loans or payments to make, then investing money in some other things is also a good idea. It is always better to invest money in the subject of your interests. Even before investing make sure to talk to your family/friends and take advice from experts in the sector that you are investing.

Say that you already have a financial plan, and if it is not working out it is the time to change your strategy.


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