How to prepare a cash budget and How Mintyn bank can help you manage your expenses
Preparing a cash budget is a good way to ensure you are keeping things in check with your financial statements and know where all your money is going, Mintyn Bank was built for Nigerians to take control of how they spend their money. The budget helps us to decide what purchases can be afforded, and which ones cannot. It also helps to prevent overspending, rather than having to trim a budget when it’s already been spent.
A cash budget reveals all aspects of a firm’s cash inflow and outflow. It provides an up-to-date picture of the firm’s financial standing, thereby serving as a probable indicator of its financial health. There is no point in preparing a budget if you won’t actually follow it through.
So if you are determined to curtail your spending and adhere to a laid down cash budget but you don’t know how to prepare such cash budget, keep reading to find out the tips on how to prepare a cash budget presented in this article.
How to Create a Cash Budget to Save for That Next Big Purchase
No matter how much money you make, it’s always nice to save extra cash. Having a cash budget is one of the best ways to do so. We’ll be saving for that next big purchase! The following tips will show you just how to go about it.
To prepare a cash budget, you will need to determine how much you earn each month. This can be done by listing all sources of income and then determining whether your income is fixed or variable. Fixed income means that the amount of money you earn remains the same from month to month. On the other hand, variable income fluctuates according to some factor outside of your control (like seasonal demand).
Mintyn bank which is one of the highly recommended online banks in Nigeria, helps you in this aspect through one its amazing features, and that is “save money” which has various saving goals you chose from.
Don’t forget about any one-off payments or bonuses that you might receive—these are still important for calculating overall monthly earnings. You should also consider whether your pay period is weekly or fortnightly before deciding on an average monthly figure; if there’s not much variation in pay cycles at your workplace, the latter may be more useful for budgeting purposes since it gives flexibility for saving up funds during periods when there’s extra cash coming in.
Finally, keep in mind that if your salary is paid on a variable basis (e.g., per piece completed), then use the lowest monthly figure possible when calculating costs associated with items such as rent and utilities; this way they won’t be too high compared with what they will actually cost over time
Make a list of all your bills. The first step to creating a cash budget is to know exactly how much you spend on each bill. This includes not only monthly bills but also one-time expenses such as insurance premiums or annual property taxes, as well as long-term savings and debts that aren’t paid back at regular intervals (like college loans).
List every expense you can think of, even if it doesn’t happen monthly. For example, if your monthly car payment is N200000 but you pay half of it in January and half in May, list N100000 twice—once for January and once for May—on your list.
Be sure to include recurring payments from credit cards or other loans as well as irregular expenses like car repairs or medical bills that come up unexpectedly
Credit card debt is the highest-interest debt, so you should pay it down first. If you have other debts, such as student loans or car loans, prioritize those before moving on to the credit cards. Then focus on putting aside money for savings and investments.
Stop using your credit cards if you can’t pay them off in full each month. If that’s not possible because of high interest rates or other factors, consider getting a balance transfer card with a lower APR (annual percentage rate).
You may have a target amount of money to save, or you may want to save a certain percentage of your income. Whatever your goal, it’s important that you set aside money for savings.
Make sure the amount you are setting aside is realistic and achievable. You can always adjust it later on if necessary – but only if you have given yourself time to see how much money comes in and goes out each month.
If you don’t already have a budgeting system in place, it would be wise to get professional help from someone who works with budgets for a living (like a financial advisor).
If you download the mintyn bank app and create account with them, you will have to opportunity of creating various saving and spending goals for your big purchase or business which will help you stick to your purchase and target. Their monetary transactions is hassle free, no hidden charges, easy to us with a clean interface to create an amazing banking experience.
As you see your budget grow and become more balanced, it’s easy to start spending more than you’ve planned. This is where the discipline comes in: You have to stick to your budget! If you don’t, all the hard work will be lost and you’ll be back at square one.
To ensure that doesn’t happen, always check your tracking app or software regularly so that if there are any changes or corrections needed, they can be made right away. And remember: A budgeting app isn’t just for keeping track of what’s coming in and going out of your account; it’s also useful for planning future expenses (and setting aside funds for them). If a purchase comes along unexpectedly—like an unexpected bill from work—you can use this extra time as a chance to brainstorm different ways of managing those costs without impacting other aspects of your life too much by selling off some assets on eBay or taking out a loan from someone who offers bad credit loans at high interest rates (we recommend avoiding these kinds of loans).
The best way we’ve found success in maintaining our budgets is by taking advantage of modern technology! There are lots of free apps available on Google Play Store like Mint which makes it super easy even if they’re not great with numbers/math skills as well as being able to keep track of themselves through their phone’s camera feature which takes pictures instantly showing how much money has been spent thus far today before making any purchases again later today still within its first use!
It also shows how much interest charges would cost us over time given current rates offered by banks such as Capital One Bank.”
You can budget without struggling with debt.
You’ve probably heard that you need to budget. It’s a common piece of advice, and it’s something we all need to do—whether we’re trying to pay down debt or simply track our spending habits. But if you’ve ever tried to create a budget before, it can be intimidating and difficult. The truth is that there is no one-size-fits-all solution for creating an effective cash flow strategy; however, there are some key steps you can take when creating your own budgeting plan.
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