How to Calculate a Simple Monthly Budget

Taking control of your money: A step towards an entrepreneurial mindset

Do you hate thinking about budgets or managing your money? You're not alone! Yet as an aspiring entrepreneur, it's crucial to understand that effective money management is the cornerstone of business success. It's amazing how many people avoid checking their bank account, unaware of how much they spend each month on shopping or bills. This tendency to avoid financial reality is the antithesis of the entrepreneurial spirit.

If this sounds like you, you're definitely in the right place to start your transformation. In fact, one of the best ways of improving your mindset when it comes to money, and therefore forging a entrepreneurial mentalityThe first step is to start reframing the way you think about money-related words, such as "calculate a monthly BUDGET".

The word "budget" frightens some people. They hear "budget" and think of all the restrictions associated with the term. But as an entrepreneur, learning how to manage a budget is synonymous with freedom and control. It doesn't mean limiting your spending, but rather optimising it to achieve your professional and personal goals.

I'm all for budgets, but I also want to enjoy life! Calculating a monthly budget lets you know what you're spending and how much money you have left, which helps you feel more in control. This skill is essential for any entrepreneur who wants to manage their resources effectively.

People who think they are "bad with money" or have similar negative beliefs about money tend to avoid managing their money. It's a mindset that can seriously hamper their entrepreneurial success. For this reason, it is important to get rid of these negative beliefs. limiting beliefs and take control of its financial health.

The easiest way to do this is to start working out exactly what's coming in and going out of your account each month. This means taking a proactive and considered approach, which are essential qualities for any entrepreneur.

Here's a quick guide on how to make a simple but effective monthly budget for an aspiring entrepreneur:

Start by determining how much money you receive each month.
Make a list of your unavoidable monthly expenses, such as your mortgage/rent, utility bills, debt payments, etc.
Account for variable expenses such as shopping or fuel for your car.
Then take into account any irregular expenses, such as the annual home insurance payment.

You now know all your income and all your regular expenses. Now you can go further and make your budget work for you, just as an entrepreneur manages his resources to maximise the return on his business.

Take all the money left over from your basic income minus your regular expenses and start thinking about how best to invest or save it. Like a good entrepreneur, consider reinvesting some of it in your skills or in projects that can generate more income in the future.

Don't forget that managing a budget effectively is a key skill for any entrepreneur. By getting to grips with your personal finances, you are laying the foundations for successful business management.