The total of our budget must always be positive at least it must be equal to zero. Subtract the value of our expenses from the value of our income.Add the values of our expenses to obtain the total cost.Make a list of all the expenses that we will have to carry out in that period of time.Add the values of our income to obtain the total income.Make a list of all the income that will come to us in that period of time.Decide the time period for which we are budgeting.Comply) Let’s say that doing it once every month is the default option.
Usually, it is recommended to always do it before having the money in our hands and for periods of time that are neither too short (few can get into the habit of budgeting on a daily basis -although they do it unconsciously-) or very long (because it is more likely that they will not do so).
Whenever we want to have a simple idea of how much money we have and what we will spend it on in the next days, weeks, or months, it is convenient to make a budget.
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