By George Makado on The CapitalBudgeting The Right WayYou may have heard about how budget helps people make good financial decisions, achieve financial goals and settle outstanding debts. This is true about budgeting. Many people have heard about the benefits of creating and following a financial budget plan for their income but many do not know how to budget their money to effectively make it solve their financial issues and mystery. Creating a budget for your money is not so difficult, you only need to follow some simple instructions and you will be able to efficiently manage and account for any penny spent and earned. In this article, I will discuss with you on how to budget your money for your own benefit and merit. The explanations are right below.Determine your Income and ExpenditureThe basic and fundamental requirement for knowing how to budget your money is to determine how much you earn as income or revenue and how much you spend on various needs or wants in a single month. Note that this determination may not be the exact amount of how much you spend but you should be able to provide the accurate amount you earn monthly. You need the determined figures to set up the budget and to determine your monthly income, check your monthly payslip while you can gather past receipts of items purchased, bank and credit card statements to arrive at the estimated amount as an expenditure.How to Budget Your Money using Software or ApplicationThis is the smart choice for preparing a workable budget for your money. Software and applications such as Mint, Quicken AceMoney, and BudgetPulse have inbuilt tools to easily and rapidly help you create a budget that is custom made for you while also aiding your income and expenditure analysis so you can adjust or improve on your spending habit. Making use of any of these applications will save you time and energy needed to prepare a spreadsheet to input figures.How to Budget Your Money by Planning with income and Estimated ExpenditurePreparing a good budget for your money require you to readily use true figures of income and expenditure so as to enjoy the maximum benefits of budgeting. A wrong figure will make the whole plan fail. To stay safe from error, calculate the 5% of the expenditure every month for the last five years. Add up changes that have occurred with fixed payment and expenditure to make up a preliminary budget. Thereafter, include as part of expenditure, an amount for financial goals such as payment of debt, savings for vacation or car. Don’t forget to include tax as part of expenditure even though you should try to maximize tax advantage to reduce amount payable for tax. If you do this right, you will arrive at a good plan that covers the amount expected as income and a figure expected as expenditure on your budget.In conclusion, you have learnt how to budget your money following the above steps and you then can think of clearing debts, paying off student loans and achieving any financial goals if you have the discipline to spend based on what you have itemized on your budget.The Capitalhttps://medium.com/media/3b6b127891c5c8711ad105e61d6cc81f/hrefHow to Budget Your Money Properly was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.