Budgeting 101: Take Control of Your Money

A budget is the foundation of financial health — it tells your money where to go instead of leaving you wondering where it went. Start by listing your income and expenses, subtract one from the other, and apply the 50/30/20 rule: 50% needs, 30% wants, 20% savings or extra debt repayment. Then track your spending.

Budgeting 101: Take Control of Your Money

A budget tells your money where to go instead of wondering where it went.

How to create a simple budget

1. List your income — Total monthly take-home pay. If it varies, use the average of the last three months.
2. List fixed expenses — Rent, loan repayments, insurance, transport, school fees.
3. List variable expenses — Groceries, electricity, airtime, personal spending.
4. Subtract expenses from income — Positive means money left over. Negative means you need to cut back.
5. Apply the 50/30/20 rule — 50% needs, 30% wants, 20% savings or extra debt repayment.
6. Track your spending — Review bank transactions weekly.

Tips for sticking to your budget

• Use cash for discretionary spending — when it is gone, you stop
• Cancel unused subscriptions
• Cook at home more often
• Wait 24 hours before buying anything unplanned

A budget does not restrict you. It gives you permission to spend on what matters most.

Put your budget to work with How to Get Out of Debt and Regain Control and 5 Strategies to Pay Off Your Loan Faster.