How to Budget: February 2025 edition

Write about my approach to budgeting?  Well….now you are speaking my language.  What is my approach to budgeting? Well it is the basic approach. You know the kind you learn in school and from family members. You know the kind where you get a note book and  write everything done section by section. So lets gets started.

1….when you are budgeting always figure out your monthly income. If you have a job figure out how much you make each month roughly.  If you are a small business owner figure that out too. If you are a contractor do the same. Not everyone has a stable 9 to 5 so first step is to figure out basic monthly income streams. Once done we move on to the next section.

2…. figure out your expenses.  If you are a single person vs a family one your expenses can be little compared to the average individuals in your city or more. If you are a student or not same thing applies so figure out your monthly expenses after you figure out your monthly income streams. Monthly expenses are things like student loans or rent bills or car insurance if you are a student. For most students they either live at home – its 2025 live at home and save money- thus no rent or if they have one its low because splitting it with others. And if you are post college graduate then things like mortgage and car note and health insurance and so on are part of your monthly living expenses. Thus depending on your age, married status and amount of children and so on your expenses could be more or less each month. (As Christians always remember to do your tithes.  Remember if Jesus Christ didn’t create those plants and rocks and so on you won’t have a job the way you do because no materials thus give your 10 percentage and count it in your expenses)

3…..after you have figured out your monthly income streams and monthly expenses you are going to subtract the two from each other. Never listen to anyone that says pay yourself first. Nope it’s pay of your bills and expenses first. A peace of mind is your payment. Remember needs come first before wants. You need shelter i.e a house not a Gucci purse. So pay your mortgage and rent not buy that purse.  That’s for later.

4….once done with subtracting your monthly expenses from your monthly income streams whatever you have left over is your savings and spending on self and family and friends money.  We hope you have some spending or saving money left over. Anyway whatever is left is your spending and saving money. Now split that amount in half. 50 percent you are going to put in a savings account cd account or an investment one. Dont touch it. Its for raining days and emergencies money. Remember needs before wants. The other 50 percent is your spending money.  You want that Gucci purse?  Take a portion and save for it over the months from your second half of your leftover money. You want that new shoes? New game? Same. Needs first before wants. 

4….enjoy your month with no stress because your needs are met and you been saving up so no worries. Thus you can do your wants now.  Enjoy.  That’s my monthly budgeting approach and tips.

Good for now and have a fantastic day.