How to create a budget in 30 minutes? Learn the easy way

Learn how to create your budget in 30 minutes

Creating a budget may seem like a difficult task, but believe me, in just 30 minutes, you can have an organized financial plan that will help you achieve your goals and improve your financial health.

Want to know more about the creation process? Just read the content to better understand a quick step-by-step guide and start managing your money more intelligently. Let’s go?

1. Why create a budget?

First of all, let’s understand why you should create a budget. Many times, we let money go down the drain because we have no idea where it’s going.

A budget will help you know exactly how much you earn, how much you spend and, most importantly, where you can cut back to save.

Among the benefits of having a budget, we can highlight:

• Financial control: you will know exactly where your money is going, which will help you avoid surprises at the end of the month; Achieving financial goals: if you are planning to take a trip, buy something or even start saving for the future, a budget will be key to helping you make these dreams come true;
• Avoiding debt: having a clear view of your expenses will allow you to cut unnecessary expenses, preventing you from spending more than you earn and falling into debt;
• More peace of mind: Knowing that you have a plan for your money gives you a sense of security, and believe me, this makes all the difference in your emotional and financial well-being.

Step by step to create your budget in 30 minutes

Now, let’s move on to the step by step to create a quick and efficient budget! With the tips below, you can better understand how to create your budget in less than an hour.

Write down your income

First of all, you need to know how much money comes in each month. It could be your salary, extra income, anything that goes into your account. If you have a fixed source of income, such as your salary from a traditional job, write down this amount.

If you are self-employed or have a variety of incomes, take an average of what you earn.

List your fixed expenses

Now, let’s look at the expenses that you can’t avoid each month. This includes rent, energy bills, water bills, internet, insurance, and even installments on loans or debts that you already have. If you don’t have all of these fixed monthly expenses, great! If you do, write them all down.

Evaluate your variable expenses

This includes that coffee at Starbucks, going to the movies with friends, or shopping at the mall. These expenses vary from month to month, but it’s still important to write them down and get an idea of ​​how much you spend on entertainment, eating out, and other non-fixed expenses.

Set your priorities

With everything written down, the next step is to take a look at your expenses and see where you can cut back. Are there any fixed expenses that you can negotiate, like a cell phone or cable bill? What about variable expenses? Do you really need to eat out so much? Be honest with yourself!

It’s also a good idea to set aside some money for savings. Even if you start small, the important thing is to get started.

Track and adjust

Now that you have your budget ready, the work doesn’t end there. It’s important to track your expenses throughout the month and adjust as necessary.

Sometimes we end up spending more than we planned, but that’s okay. The important thing is to realize this right away and make adjustments for the next month.

What tools will help you?

Creating a budget on paper or in a spreadsheet is a valid option, but there are many apps and websites that can make your life easier. They help you organize your finances in a practical and automatic way.

One of the most popular apps is Mint, which connects your bank accounts and credit cards, organizing all your expenses into categories, making it easier to see what you spend and where you can save.

Mint is free and is a great option for those who like to have everything at their fingertips. You can visit the official Mint website to get started.

Conclusion

Creating a budget doesn’t have to be time-consuming or difficult. With just 30 minutes and a little bit of dedication, you can gain a better understanding of your financial situation, make smarter decisions, and start managing your money effectively.

The important thing is to take the first step and continue to adjust your budget as your needs change. Over time, you’ll see results and feel more confident about your finances.

Written by

Juliana Raquel