We have a tendency to exhaust out salary in the mid of the month since we are cushioned by monthly replenishment of our account. It encourages the usage of credit card and payday loans and slowly leads us toward a vicious circle of debt. Preparing a budget in the beginning of the month help us allocate our salary properly and track down the expenditure which otherwiseeludes us.

Creating a budget is not as difficult as it sounds since we've modern resources such as excel sheet and its online counterpart at hand. All it requires is a little patience and calmness. This is how you should go ahead with your monthly budget. 

- A list of expenses in the last few months gives a clear picture of the expenditure behavior. While preparing such list, recurring expenditures should be taken into account while one time expenses should be ruled out.

- Bills should be lined up next in a list. It includes house rent, phone, internet, newspaper and magazine, cable etc.

- Payment towards investments, insurance, recurring deposits and credit card etc should be listed up next.

- Similarly fees such as school fee, college fee, guitar class fees or any other fee that is paid every month should be queued up in one section.

-Household expenditure comes next. It includes groceries and other consumer goods like cosmetics and toiletries which you need to buy every month. Commuting expenses can also be included in this section.

- A list of the other essential expenditure ineluctable for that month with no scope for postponing should be prepared. This covers your travel expenses or wedding gifts. Try to do away with extravaganza when you plan out such a budget.

- Your entertainment and dining out budgets should also be planned as per your normal trend. Regular visits to theater and restaurant every weekend could be planned advance in your budget.

- The remaining disposable income should be spared in your bank for emergency use, unseen expenses or saving.

With a clear idea of the expenditure of the month you can allocate your salary towards each expense wisely. A well planned budget will save you from the troubles of reckless spending, cash shortage and loan trap which can reflect in your credit history.