The definition of a budget is basically based on estimate of
itemized of expected income as well as expenses for a given period in the
future. Many single parents are faced with financial difficulties when they are
left to take care of their own children and they do not have much income that
allows them to support their family in the lifestyle that they were used to.
Well if you are a single parent and have been faced with this dilemma don’t worry you can live on the small financial income you are able to get for now by following the below steps and adhering to them strictly.
·
A Budget
Creating a budget helps you show all your sources of income,
this will include job, child support, tips and even bonuses. The good thing
with creating a budget is that you will now keep track of the finance coming
in. so you need to gather your sources of income and list them and you will be
surprised you could be making more than you claim to be making!
·
List
expenditures
It is important to list down expenditures so that you ensure
you know how much you are spending on a monthly basis. The expenditure will
cover cash, check and also credit card charges. All you are required to do is
collect all your expenditure including periodic costs that you pay either
quarterly or yearly.
You should go ahead and list your expenditures on the same
page carrying your sources of income, add up them up and see whether you are
going to be left with a positive number.
·
Plan
Formulation
This stage is where you sit down and create an action plan
that will help you reduce and eliminate your debt. If your expenditure is
higher than your income that is also an okay thing since now you will have the
best time to create a plan that will help you achieve your quest.
·
Categories
You should categorize your list of expenditures so that you
know how much money you spend on necessities. It is necessary you learn how to
group your expenses by category, you should put your household items together,
separate your car and various transformational modules in another category
always ensure that you have a categories in savings, medical and entertainment.
After you have done so ensure that you have divided up your
income across these categories and try to ensure that you never spend more money
than you have in the category.
