Cyber Poems

If you are reading this, you are most likely looking for a way to gain control of your finances. The best way to do this is to produce a monthly budget and sticking to it. Having a sound budget is fundamental for managing money, one that has allowed me to get on with my day to day life even on limited funds. Managing my monthly budget is one of the most important things I do every month, this has allowed me to systematically meet all expenses, grow my savings, and eliminate debt.

I normally organise my budget for the coming month close to the end of the month. This will prepare me with my expenditures in the coming month. It’s not a good idea to produce a budget after getting paid because, too often, that flush feeling of receiving a paycheck leads to uneccessary and spontaneous spending before the paycheck ever reaches the bank.

I start my personal budget by listing all the disbursements that must be paid on time like, loan repayments, utilities, insurance payments and car loans. These are the essential things that I must pay to keep a comfortable roof over my head. I like to pad these essentials to create “money back” after paying the bills and, if costs increase circumstantially, I’m always covered.

Next, my budget is subjected to a list of discretionary things I need to cover but could live without if absolutely unavoidable. These items include monthly savings deposits, credit card repayments, and donations to charity. Don’t get me wrong, some of these things are also essential, but in case of emergency they can be excluded. By giving credit card companies the maximum instead of the minimum, I keep my credit score high and my debt low.

My budget will not include the cost of food, clothing, or entertainment. These expenses get covered by what’s left over and that’s that. Some months involve lots of beans and rice, slow-cooker meals, free or cheap entertainment, and only one inexpensive piece of clothing . This strategy of handling my monthly budget has worked out very well over the long term as long as I honor it religiously.