It is necessary to write down a list of sources of fixed income, and salaries obtained from jobs and others. He is self-employed, or has variable income from a job, so he can estimate the income he is expected to receive in that month.
net income calculation
Net income is what remains of the monthly income after paying bills and other expenses, and it may be a valuable amount that can be used to pay off debts, and net income can be calculated by subtracting expenses from the monthly income, and writing the number obtained every month even if it is negative , where the self will be reminded that the spending was higher than the salary in that month.
Note down basic expenses
To organize the home budget, it is necessary to write down the basic expenses. It is possible to start writing fixed bills on a monthly basis, such as: house rent, mortgage, car payments, credit card debt and insurance, and then write other monthly costs that are disbursed during the month. , where these are the basic fixed expenses.
Write down all expenses
The individual should estimate the variable bills each month, such as the phone bill, various services, food, household expenses, gas, medicine, public transportation, shoes, and clothing, in addition to determining a reasonable amount for unnecessary expenses or luxuries, including entertainment Eating out, hobbies, and other things that money is spent on regularly.
It is worth noting that going to restaurants to eat should be reduced, because frequent going to restaurants affects the expense and reduces the savings from the monthly salary, so it is possible to prepare a home meal and eat it with the family instead of wasting money in luxury restaurants.