What Are The Steps Of Budgeting?

What Are The Steps Of Budgeting?

1 Answer

  1. Hi Manushree, its important to set a budget right before you put it into implementation. There are some steps you can follow to make your budget effective, firstly, set realistic goals. You need to recognize what is your goal at first and then make sure if your goal is practical or its a tale of fairyland, you should always and always set realistic goals.
    Identify your income and expenses. Its not necessary to be absolute correct in doing this, but try to take references from previous year’s income statement, know where are you going to investment and how much you’ll get in return. You also should differentiate between needs and wants. Set clear priorities for yourself and the decisions become easier to make. Next up, design your budget, balance your budget to accommodate everything you need to pay for.
    Lastly, put your plan into action, try not to be too rigid or too flexible. Set money aside to pay for some seasonal expenses that just occurs like that so you can afford them without going into debt.

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