How to plan a budget

A budget is a plan you develop to decide how you will spend your money over a certain period (every day, week, month, year). This plan shows you how much money you make and how you spend it.

Budget planning is as simple as that:

  • Start a budget by gathering your bills: think about how you spend money besides paying your bills. For example, do you buy a cup of coffee every day? Do you pay for entertainment?

  • When you have your bills and pay stubs, write down your expenses (the money you spend).

  • Write down how much money you make: in other words, what is your income.

  • Subtract your expenses from how much money you make.

  • If the number is less than zero, you are spending more money than you make. Look for things in your budget you can change. Maybe there’s something you do not need or a way to spend less.

For more details on planning a budget, refer to the FINCA Dan mobile application. You can also check your knowledge.