How to create a personal budget

Written by Crezist Team

You must have heard this term money management endless time. But have you ever thought what is the first step towards money management?

Well, that’s our today’s topic – personal budget!

In this post, we will talk about how to create a personal budget easily and in simple steps. There are certain simple steps to create your personal budget which is first and foremost a step towards money management. Let’s start!


#1 List down all your expenses

The first step in a personal budget is listing down all expenses. Expenses can be of many types and some of the common spend are – rent, travel, food, EMIs, etc. Make sure you have listed all your expenses here are there are no surprises at the end just because you didn’t list any. This way you will know what you are going to spend every month.

#2 Separate need from want

This is an important step – from the list of expenses above, analyse what are the expense those are must vs those you want. For example, spending on food or rent is the need while buying a car or going on vacation are something you want. Want should be controlled while need must be fulfilled. Depending on your income later we will analyse whether you really need to fulfil your want or that’s something can be parked for later.

#3 Plan ahead

Well, once you know exactly what you need, next is planning things well ahead in time. For example, if you have to go on a vacation then you may plan it well ahead of time. This way you can get the same air ticket at a way cheaper rate than what you will get around your travel date. Also, similar deals you can get at the hotel and other activities. Of course, you will have the option to borrow from authentic platforms like cash advance.

#4 Emergency fund

This is another great point and what something each one of us should plan well ahead of time. Some unexpected time can come in anyone’s life and so you should be prepared for those. These can be some examples of when you need emergency funding – health conditions, sudden plans to buy a home, etc. For all these expenses you can’t be just dependent on a loan. You should also keep saving some amount as your emergency fund.

#5 Make sure to save

Another important point is you need to make a habit of saving. No matter how much you earn, if you don’t have saving habit, you can never have funds. And so, from day-1, make saving a habit and this way you will be able to manage all your finances in a better way.

#6 Stick to the plan

Once you have all these details with you, it’s time now to make it a habit. So you know your expenses, you know what is needed vs want, emergency funds, and your earnings. Now you know how much surplus you have and how much is a limit you can spend. The most important thing is you need to stick to it in order for it to work for you.


This was a quick guide to creating a financial plan for you. Do implement this today and stick to your plan. What’s your thought on this?

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Crezist Team

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