ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How To Make Budget

Updated on October 22, 2011

That’s what happens when you don’t make a budget. You end up spending 300$ when out to buy grocery because this leather jacket that you saw in the market was the best you had ever seen and since you had money in your wallet you just could not help yourself.

You had to buy it.  And it happens every month. You get the salary but at the end of the month you find yourself wondering and getting worried where all the money went, when nothing is left at the end.

Every time you get the salary, you promise yourself that this time you would spend it carefully, but, yet again you end up letting the money slip from your hands. But it would never be possible unless you make a budget.

What Is A Budget?

By its definition, the term budget refers to a list of expenses and revenues planned. In general terms it is just a way of planning how to spend and save money.

Making a budget is very important. And it becomes almost impossible to handle ones expenses if an accurate budget is not made. Budgets do not only hold an importance in strategizing ones business financial status but it holds an equal importance in handling a common mans monthly income.

How To Prepare A Budget?

Preparing a budget is an easy task. The problem is that usually people fail at making the accurate budget because they do not know how to. There are many ways one can make a budget. following are few steps regarding as to how a budget should be made:

  • Firstly make a list of your regular monthly expenses. This includes your house rent, monthly bills and basically the expenses that are regular monthly. Make a column, label it as the regular expenses and add the list in this column.
  • Now make a column of varying expenses, this would consist of all the expenses that vary month to month. For example the money expected to be spent on food gas and other such expenses. Be sure that the amount you write must be a little more than you have estimated. Just to be on the safe side.

  • Now make a column of your source of income. Things would be easy if you have one. But if you have multiple sources, make a list of those.
  • With all the above being done, calculate the expenses and the total income.
  • Now subtract the expenses from the income. That can be done using a calculator. The result would suggest where you stand. If it is in negative then you are clearly above the mark and you need to make some deductions. And if it’s not, then well done. You would save money by the end of the month.

There is another simple way of making a budget:

  • If you have a steady job, write down your income. It you income varies, then estimate the minimum and pen that down.
  • Now make two columns. One should consist of the list of things to be spent money on. The other should have the amount to be spent.
  • Start writing down. Important things such as bills and rent should be written on the top.
  • Next write down the expenditure on food, oil or gas.

  • The remaining things might include all the things that you intent to do or are to be done. For example car repairing, traveling and stuff.
  • Calculate the expenses and subtract it from the income. That would tell the saved amount.

The above procedure can be demonstrated in the following example:

Joey, a college student who works as a bartender, estimates his monthly income to be approximately 1500$. That is probably the minimum that he could earn.  That’s how he makes his monthly budget:

Total income
Apartment rent
College expenses
Electricity and phone bill
A haircut
Total expenditure
Money saved

Simple wasn’t it? Making a budget as said earlier is not at all difficult. The above two ways are simple and do not require much of an effort. A simple pattern can be used by some one handling a family; it is after by the end of the knowing your income and planning your expenses accordingly.

Tips On Making A Family Budget


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)