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How To Budget Like A Pro: A Guide by A London Accountant

Learn how to make the perfect budget for work-at-home moms.

Creating a budget may seem like an impossible task while sitting at the table and wondering where to start. However, the effort you invest is going to be well worth it in the long run, and this applies to both individuals as well as small businesses. Having a clear picture of your finances will allow you to make informed decisions about investing your financial resources and achieving optimal results.

If you are struggling or in serious financial troubles that must be addressed urgently, you should consider consulting an expert. Talking to a specialized firm such as contractor accountants Howlader & co. could help you explore all available options and chart a course to your future financial stability. The experts can even point out opportunities that you could have overlooked or even missed entirely without proper knowledge of the applicable laws.

How To Start Budgeting

To ensure that your budget covers every necessary detail, you should start from the basics. Go through your documents and gather all financial statements at your disposal.

Usually, these include all bank statements, utility bills, credit card bills, investment accounts, receipts, loan mortgage payments, etc. Ideally, you want to have any available information about your income and expenses.

Start Calculating

At this stage, sort everything into two categories. One will contain all of the income sources you currently have. The important part here is to reach a number representing all of the available funds after the necessary taxes are deducted. If you receive a regular paycheck, the net income should suffice. Add additional sources such as money earned through self-employment, child support, or social security.

The other category is going to track your expenses. To keep everything tidy and clearly visible, you would want to further subdivide the expenses into fixed and variable ones. The fixed expenses generally have constant value and have to be paid regularly. These should include mortgage, loan, and rent payments, but add any payment that takes place monthly and is relatively the same in value.

The variable expenses are the ones that happen incidentally or to meet a specific need. For example, this group should include your grocery expenses, gas money, the funds you spend on going out, entertainment, etc.

From a business budgeting perspective, the costs side should again account for any mortgage, rent, and loan payments, but it must also include the payroll expenses, raw materials, tax payments, interest, etc.

Compare The Monthly Income and Expenses

This is the crucial part. Look at your monthly income and see how it stacks up against the drawn expenses. There aren't that many possibilities. If it exceeds your monthly expenses, then you have more disposable funds on your hands.

While it may be tempting to start splurging a little to congratulate yourself on this success, doing so could be a bit premature. Instead, use the excess amount to further repay some of your outstanding debt. Also, look into opening a savings or retirement account. To keep yourself from faltering, you can set up an automated transfer from your checking account towards your savings.

On the other hand, if the expenses surpass the incoming funds, you will have to implement some cost-cutting measures. Leave the fixed expenses alone and focus on the variable ones.

Consider reducing your streaming subscriptions or limiting the times you go out per week to 1 or 2. Simply cut out the expenses associated with the least essential activities according to your personal preferences.

Ultimately, the goal of the budget is to equalize the two categories. Achieving it will mean that all your finances are accounted for and are going towards their intended destinations without overspending and risking incurring even more debt and deepening your financial woes. If you are having trouble allocating your income towards the appropriate expenses, you can create your budget while following a specific system.


With a completed budget at your side, you can begin regaining control over your spending. Focus on repaying any high-interest and credit card debt that you have accumulated first. Contrary to many misconceptions, a budget doesn't necessarily mean that you should constrain yourself and stop having fun. It just shows you the areas where a bit of self-control is necessary. To keep you motivated throughout the process, you can designate a particular goal that your savings will go towards, such as a vacation to a place you have always wanted to visit.

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