A Step-by-Step Guide on How to Make the Perfect Budget

Consider this your map to financial independence.

I’m about to share with you a step-by-step guide on how to make a practical budget that ensures you reach your big financial goals. “Practical” is the operative word here. If you have high hopes, like when I started budgeting, and make your budget too restrictive, you’re going to blow through it every single time. What’s worse is that you may start to develop a mentality that you’re just not good with money. This couldn’t be further from the truth. Everyone is capable of being smart with their money. I firmly believe that money management is all about the perfect blend of knowledge & mindset. You need the knowledge to create a plan that makes your money work for you, and then you need the mindset to successfully follow-through with that plan.

I don’t know a single person who has met their financial goals without some form of a budget. A budget is the first, and most important, step towards financial independence. There are many different ways to budget. Some people budget bi-monthly, others budget monthly, and some even budget annually. You need to find what works for you. This will most likely be dependent on three factors: when you get paid, your regular expenses and your spending triggers. If your weakness is buying clothes when you’re having a bad day, a monthly budget…