Every month, the bills keep coming rent, electricity, food, transport, and more. If you don’t plan your money, you might run out before the month ends.
That’s why budgeting is important. A budget helps you know how much you earn, how much you spend, and how to manage your money better.
In this article, you’ll learn simple steps to help you budget for your monthly bills and avoid money stress.
1. Know How Much You Earn
Before you can plan your money, you need to know how much you bring in. This is your monthly income. It could be your salary, side business, or money from freelance jobs.
Example:
If you earn ₦150,000 every month, that’s your income. Write it down.
2. List All Your Monthly Bills
Now write down all the things you spend money on every month. These are your expenses. Include things like:
Rent
Electricity and water
Food
Transport
Airtime and data
School fees (if any)
Giving or donations
Savings
Be honest—include even small things like snacks or haircuts.
3. Separate Needs from Wants
Needs are the things you must pay for to survive.
Wants are nice to have, but you can live without them.
Example:
Need: Rent, food, transport
Want: Eating out, new shoes, Netflix
Cut back on wants if your money is not enough.
4. Plan Your Spending
Use your income to cover your needs first. Then check what is left for your wants and savings.
Example with ₦150,000:
Rent: ₦50,000
Food: ₦30,000
Transport: ₦10,000
Electricity & Water: ₦5,000
Airtime & Data: ₦5,000
Savings: ₦10,000
Giving: ₦5,000
Total: ₦115,000
Left for wants: ₦35,000
5. Use the 50-30-20 Rule (Optional)
This is a simple way to divide your money:
50% for Needs
30% for Wants
20% for Savings and Debts
You can adjust it based on your own life.
6. Track Your Spending
Keep a notebook or use a money app to track how you spend every naira. This helps you stay on track and avoid wasting money.
7. Stick to Your Budget
It’s not just about writing the plan. You must follow it. Avoid spending more than you planned, and try to save something every month—even if it’s small.
Also read: Why Sleep Matters More As You Grow Older
