How To Budget Like A Pro: A Guide On Professional Budget

daily, monthly, or yearly expenses. If you can’t control such expenses, then life will become pretty harsh. Thus, maintaining a budget is essential to keep up with the growing society. Helping you, we are going to discuss how to budget like a pro.

Our daily life indeed depends on so many things. We need food, travel, clothes, living space, education, office, and so on. Regardless, everything has a price, and we have to pay for it. But, you can’t spend more than you earn. You even need to save a portion for emergency usages. Therefore, scheduling a budget is the best way to deal with it. A lot of essential things are there to talk about. But, proper steps will make them easier for you.

Why Do You Need a Budget?

We have given you a glimpse of the idea on a budget. But, there are several things you should know. Probably, you don’t even feel like having a budget. After all, there is a satisfactory feeling in spending without care. But, it may hunt you down in the future. In most cases, your pocket will be empty during a crisis or emergency period.

We spent on essential things like daily needs. However, we also have a lot of variable costs. It can be a hobby or anything else. Probably you buy a lot of gifts for your boyfriend/girlfriend. You may spend it on friends or even family members. In addition, you can also spend on hobbies like painting, sports, or anything else.

It’s not like those spendings are not essential or necessary. But, you need to remember how much that affects your personal life. Losing your valuable earnings randomly will hurt you hard, even if you are a filthy rich person. To solve such issues, all you need is to have a proper budget for everything. In simple terms, you need to plan the overall expenses. This way, you can do all the things but with a better adjustment that will not pressure your lifestyle.

How to Budget in Some Easy Steps

Now that you know what budget is and why you need it let’s talk about the processes. As the budget depends on every little spending you do, there are several things to calculate. So, things can get pretty messy, and you will not even be close to making a budget. Many people get frustrated over such things and end up making no improvement.

Thus, it will be better if you follow professional ideas. If you go through the step-by-step process, it will be easier to do those statistical things. Not everyone is good with math or planning. So, a trusted path will be helpful for everyone, even for a newbie. In that case, we are here to give you the most verified budget ideas. Let’s start doing our budgets like a pro.

Firstly Know Your Net Income & Average Expense

It is easy to talk about budget but harder to accomplish the result. If you want to get it done, then start with the essential task. First, you have to count the income and expenses with total and average values. Then you need to find out the overall net spending and expense values. Those numbers will help you to take the next step in budget planning. Let us help you to summarize the processes and their importance.

Determine Monthly Income

Income is what you earn. It is not limited to a single source. If you do multiple part-time jobs, then your income will come from many sources. If you have lots of investments, then there will be a lot of passive income as well. Even more, it doesn’t have to be money. Any good that has value is also part of your income.

So, no matter what gives you value is a source of income. Then, you have to add up all the sources and their total value. You need to calculate the monthly earning and estimate the yearly income from it. For better and easier calculations, you also need to do average math on those numbers. It can be average monthly income and average yearly income.

Determine Monthly Expenses

Later, you have to do the same thing with expenses. Food, living space, travel, education, medical, and everything that costs you money or goods are considered expense sources. Add up all the sources and their expense values. Then count the monthly expense and estimate the yearly expense from it.

Even though most income sources are fixed, that is not the case for spendings. You may have a lot of unintentional spendings from unexpected sources. It can be a medical or random party with friends. Keep every possible count in your calculation.

Professional Budget Plans

Calculate Net Values

In the end, you need to find out the net value you can have. Calculate the difference between spending and expense. It will give you the net value. Do the same thing for average numbers. There will be average expenses and savings.

Indeed, the higher value you can save, the better backup you can reserve. Depending on your reservation aim, you can look for those net spendings and expenses. If the net value is below your expectation, then you have work to do with the spending structure.

Secondly, Plan for Your Financial Goal

As we mentioned earlier, you need to count net spending and earning. You also need to find out the average earnings and expenses. It will help you to calculate the average savings. Now, you may be thinking about the need for saving calculations.

But, this is what helps you to determine the financial goal. If your average saving is $100 per month, then it is worth getting a financial goal of $1000 saving per month. It will be much better if you set the goal at $150 or $200. Although, it also depends on the expenses.

If you have a lot of variable/extra costs that can easily be avoided, then the scenario becomes pretty different. You can set a much higher financial goal than the current saving point. Every little saving will help you to get a better lifestyle. Not only do you have more spending options but also you can invest in different sectors. You can even clear any debt or deal with financial difficulties.

If you follow the success or motivational stories from professional people, you will get it. They used to save little by little after deciding on a financial goal. Then, they invest those savings into something promising. If you already have a financial goal with those calculations, then go for the next step.

Thirdly Choose Your Favorite Budgeting Method

We have given you the very traditional budgeting steps. , you calculate earnings and expenses. Then get rid of additional spending and save money. The target is always higher. The more, the better. But, you can also follow some guided methods to reduce the expenses significantly. Besides, there are other methods of earning more profit from your income sources. Let’s talk about some of those popular budget methods.

Spreadsheet Budget

As you already know, this budget requires a lot of calculation. Doing those things manually is pretty hard. You may forget something or need to cut it out multiple times. So, using paper and pen will be tiresome work. In that case, there is software like Microsoft Excel spreadsheet and Google spreadsheet. This Method follows a budgeting system through a spreadsheet.

Here, you can easily put the income and expense sources and their values. Then calculate them with simple mathematical formulas. Create additional names for total and average values and do the calculation as well. You can even do the math separately for each month and year.

In addition, you can easily update the numbers or names anytime. The relative figures will be updated accordingly. This budgeting method is more like tracking everything rather than going for a budget formula. But, it has the highest user ratio. Because using a spreadsheet is the best budget plan for beginners.

Zero-Based Budget

The zero-based budget is a distinct budget formula. Here, you put every single income and expense. Not a single value will be ignored. You have to prepare the plan so that the net saving and expenses will be equal to your income. Thus, the final value will be zero. In simple terms, your expense and saving value will be precisely the same as the income value.

If you ignore a single value, then this method will call the calculation an error. Theoretically, it is the most professional budget plan. Most industries and office plannings follow this type of budget to ensure business transparency.

Cash Envelope System

It is a simple system where you will only spend a limited amount of money. Keep the spending into an envelope and use it for any spending. You will not spend any more if the envelope becomes empty.

50/30/20 Method

It is a simple spending method where you divide the whole income into a perfect ratio. There are 50% for basic expenses, 30% for fun like holiday or party, 20% for saving or any emergency spending like debt.

Bare-Bones Budget

It is the best low-budget plan for tight income. You strictly spend only on essential things and save the highest value possible.

Bullet Journal Budget

This type of budget is a bit flexible. There, you keep track of everything by making journal-type information. Unlike most plans, you can change any value to make it more satisfactory.


It is a traditional budget plan that is pretty popular in Japan. You divide the expenses into multiple categories like culture, need, want, and emergency events.

Calendar Budget

This is a budget plan where you track both income and expenses through a calendar. You have to write down each income and expense on the exact date to track the numbers.

Half-Payment Method

In this half-payment Method, you clear all the bills within the early period of a month. In most cases, within the first two weeks. Even if there is no bill, you keep the expense as if there is an actual bill. This way, you don’t have to worry about money shortage when the actual expense comes. Moreover, you have to make sure that every bill is getting paid each month.

Paycheck Budget

Paycheck Budget is a versatile budget plan where you do the match based on income. It can be weekly, monthly or yearly tracking. Anything goes depending on the payment receiving time. Moreover, you track the expenses with the same ratio as well.

Fourthly Picks the Best Budgeting Tools for You

A budget tool indicates the thing that may help you with the plan. It can be a diary, pen, pencil, eraser, or similar tools for manual planning. But, there are advanced tools for you. Many apps are there that will help you with the planning.

Microsoft Word, Microsoft Excel, Word pad, database system, and so on. All those tools not only help you to do a huge budget plan but also precise input. Moreover, you can calculate the numbers easily with only a couple of clicks. In some cases, there may be a calendar or other supportive tools as well. So, pick the best budget tools you need.

Keep Growing And Changing With Your Budget

Our society and living style changes over time. So, we have to change ourselves along with the evolution of daily lives. Thus, you have to improve and change the budget according to your lifestyle. In simple terms, you have to improve daily life with different changes.

Different earning points, different expenses will change your life. Besides, you need to optimize those things carefully. Then, you can have a better lifestyle, and more opportunities will come along the way.

The Bottom Line

Budget is really important to manage our daily life. How life will go on depends on it. Each figure we earn has a significant value for the future. If we spend them without concern about the reserve, then the harsh period will hunt us down. Thus, you always need to save a portion of your income and reduce the external or additional costs. To do so, you need a proper idea of both income and spending figures. That is where budget plans help us out. Our review contains a lot of information on how to budget like a pro.

You can follow any verified plan and do a statistical analysis of your financial condition. If you need more savings, then follow the strict budget plan. If you are fine, then follow a flexible plan. If you are more than good enough, follow a better investment plan to maintain the budget ratio. Always keep your money under control and increase the value at your disposal.

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Leonel Escobedo

Leonel Escobedo is a graduate of Oxford University with a degree in hotel management. He pursued his master’s degree in 2010, and he emerges as the top student in his class. Leonel had shown a great passion for writing about travel and lifestyle. He never had the interest to pursue work as a manager in any company. Leonel started writing in 2011, and his eBooks and contents are famous in education sites like the Magazine and Huff post. He is an award-winning writer who never disappoints when it comes to reviewing wellness and lifestyle.

His passion is not only limited to writing. Leonel focuses so much on changing the lives of people. He actively participates in self-help groups that focus on dietary disorders. Escobedo teaches people about the importance of routine exercises as a way to build better fitness. He also has a sense of fashion, and many men follow his timely content about the fashion trends.

Escobedo is a real inspiration for young writers. He confirms to many young talents that are not always about the career, but rather the passion that defines the success. He does not regret not seeking employment since he believes educating people through writing is the most fulfilling work.

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