How to Create a Weekly Budget?

3 May, 2014

Creating a weekly budget is the best way to manage your finances. Not all bills and fees come in a regular schedule within a month. To organize your budget that is payable in different schedules, a weekly budget plan is ideally a good thing to accomplish. Monthly expenditures such as water and electricity bills, payment for home or auto loans, food and other necessities should be planned accordingly to know how far your budget can be stretched. To keep track of these expenses, it is advisable to formulate a weekly budget. It is important to keep up with two main important factors in your weekly plan, know how much is your income and how much will you be spending.

Learning the budget process

Once you live up with your budget, it will be developed into a habit. And this basically is a good habit to get used to. You will find your finances much manageable if you are sticking with your budget. Whatever the nature of your bills and other expenditures, you still need to cope up with everything and from there you will understand that your budget works out smoothly.

Know your income

Have a realistic view of much you can gain every week. If you are earning on a monthly basis, you can have a rough estimate by dividing your monthly rate in four. Have a realistic view of your net income and not the gross because definitely you will fall short of your planned weekly budget if you make you make your gross as the basis. Net income means that the amount available or what is left after being deducted by some other fees.

Keep focus on your expenses

There are normally two types of expenses: the variable and fixed. If you wanted to have a much realistic view of how much will be left for you in a month, keep track of your expenditures. Other such expenses would also include irregular expenditures and discretionary spending. Do not underestimate the cost of each expense. If you are not able to track all these expenses, you would realize at the end that you are spending more than what is being gained.

Figuring out your expenses is a lot better compared to doing it in the whole month. You can keep things much more manageable. Breaking your monthly budget into weekly can make you easily analyze where your money really goes.