How to make a monthly budget in 3 minutes!

Hi guys, it’s the start of the month! What a great time to learn how to prepare a monthly budget! In this video, I will show you an example of how to prepare a monthly budget. Having a budget is the most basic need to get your finances in order! Without further a due, let’s get right into the video! Ok guys, this is the basic budget sheet I drafted for you guys! This budget is owned by Bob the Engineer. Now this budget sheet is divided into three sections, namely the income, expenses and cashflow. Firstly, Bob has a monthly salary of 2000 dollars as an entry-level engineer at a construction company. Therefore, his total income is 2000 dollars monthly. Every month Bob pays 400 dollars on rent, 400 dollars on food, 200 dollars on transport, 300 dollars on his education loan and finally, 200 dollars on shopping and dining good food over the weekends. This brings his total monthly expenses to 1500 dollars. Now we come to the fun part of all this! Cashflow, to those whom don’t know it yet. Cashflow is income leftover after deducting your expenses from your income! In Bob’s case, after subtracting his total income of 2000 dollars by his total expenses’ of 1500 dollars, his cashflow monthly is 500 dollars! Hi guys, now that is how to prepare a monthly budget! Final tip before I end this video, if I were Bob, I will save 500 dollars in another savings account as soon as I get my salary. It’s good practice to pay yourself first before getting to the expenses. This encourages saving for future opportunities and rainy days. If you like this video, do hit that like button, subscribe and share this video to those who need help in managing personal finance! We publish weekly so stay tuned and ciao!