Many people tend to justify the lack of money at the end of each month due to a lack of income. Obviously, what we gained is something very relevant.

But did you know that with some easy and basic budgeting tips it is possible to balance your finances until the situation improves? Yes! In this article we will talk everything about this subject.

Furthermore, many people do not know the basics of a personal budget.


Therefore, they find it difficult to make this budget and give up. If this is your problem, know that creating a budget can be easier than you think. Check it out below!

Know your income

Understanding and knowing what your sources of income are is one of the most important points in creating a budget. So, to know your income, consider some sources:

  • Salaries, Salaries and Commissions

It’s about the money you earn for your work, right? Some people receive this income on a fixed basis, while others may have variations in these earnings.


If you do not receive the same amount every month, you will note this variation in the monthly budget.

Or, calculate the average of these income (in the case of a semi-annual or annual budget).

But for those looking for basic budgeting tips, the simplest thing is to write down exactly what is received month by month.

  • Debts and Interest

If you have debts or pay interest due to a transaction, remember that these expenses must be subtracted from your income.

For example, if you have a monthly income in dollars of US$1,500, but a credit card debt of US$100 and interest of US$50: your monthly income is actually: US$1,350.

Attention: debts and interest are not fixed expenses, ok? We will find out more about this later, in the topic on basic budgeting tips.

  • Dividend and Investments

Here, you will add to your income how much you receive from dividends and investments. Using the parameter above, your income was US$1,350.

But, assuming you have an income of US$50 on an investment, then your monthly income will go from US$1,350 to US$1,400.

  • Social Security and other benefits

If you receive any social benefit, add it to your income. For example, you have a monthly income of US$1,400 (as per the example in the previous items).

However, you receive a fixed social compensation of US$150. So, your monthly income becomes US$1,550.

→ SEE ALSO: 10 Best Ways to Save Money

Making a budget

Understanding that you can have different sources of income is one of the first steps towards a basic budget, right?

And in the budget, you must separate these sources and not include the total, allowing you to know your income and any changes.

1. Choose your budgeting strategy

Another important point, the budget must follow a strategy or model so that you are better organized and the task is simpler.

Below, you will learn tips for creating a basic budget.

2. Record your income and expenses

The first step in creating your personal financial budget is to add up and record all your monthly income (as we explained earlier in this article). Plus, record everything you spend

In this first stage, it will be possible to have an overview of your earnings and what your main expenses are.

3. Organize your expenses by categories

The first step works like a diagnosis, right? It shows an overview of your financial life. Now, our steps will be more specific.

So, list each of your fixed and variable expenses. For example:

  • Fixed expenses (everything you need to pay per month, such as rent, studies, health plan, life insurance, etc.).
  • Variable expenses (what you spend on food, electricity, water, leisure, etc.).

Additionally, you can use the following parameter to allocate your income and better control your finances. Look:

  • 55%: basic expenses.
  • 10%: free spending on leisure and lifestyle.
  • 10%: for personal reserves intended for consumption (to buy a television or car, for example).
  • 10%: investments in your personal growth (courses and books, for example).
  • 10%: investments for the future, such as retirement.
  • 5%: money for charity, to be donated directly to those in need or to an organization.

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Determine what to pay first

Basic budgeting tips also include you defining which expenses you should pay first.

So, analyze and separate which expenses are essential. For example:

  • Light.
  • Home.
  • Water.
  • Health insurance.

In other words, these and other accounts are basic needs and must obviously be prioritized.

Use budgeting apps

The market offers good options for applications developed especially for budgets.

They are usually available for smartphones, tablets and computers.

Furthermore, the recorded data is in the cloud and you can access your budget anytime, anywhere. Budgeting apps also make the task easier.

However, spreadsheets can also continue to be used, such as Excel. See which option is best for you!

Track your budget and progress

Monitoring the budget is mandatory, especially because unforeseen expenses or gains may arise in a month.

So, there is the importance of developing a budget that allows you to clearly know what you earn, what you spend and how you spend it (even to cut expenses, if necessary).

A budget – even a basic one – allows you to manage a personal financial plan that you can view monthly, bi-weekly or weekly.

It also provides control over your finances, organization and, as a result, a calmer life without so many unpleasant surprises.

Budgeting is also the best way to track your progress. Through the budget you plan how to increase your income and save.

In this case, some things to think about are: review your habits; look for sources of extra income; shop in cash whenever possible, think about eating more in case than in restaurants.

Also, get rid of your credit card; look for free leisure and entertainment options; make a schedule to get rid of debt; invest your money.

Make lists before going shopping to avoid spending more than necessary and anticipated; Don’t buy items just because they are on sale (see the real need to buy).

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