There’s no time like the present to work on your financial health. Here’s how to make a budget in 5 easy steps:
- Calculate your net income. This is how much money you take home after taxes.
- List your monthly expenses. This includes everything from your mortgage to your Netflix subscription.
- Label expenses as fixed and variable. Rent is a fixed expense. Dining out is a variable expense.
- Find the average monthly cost of each expense. You can look at your past bank statements to gather this information.
- Make adjustments. If you see that your expenses are higher than your income it might be time to make some changes.
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