If your personal finance is not in a good condition, creating a budget for cash flow management or money management can greatly help. Creating a budget means you first estimate your monthly income and then allocate funds for different kinds of expenses. Let’s say your estimated income is $1000, now you will distribute this amount for things like rent, credit card bills, groceries, utility bills, transportation bills, as well as saving and investing. The point of making a budget is staying with it. Effective budgeting requires you to follow various formulas such as 50/30/20 or 80/20.These formulas should be used while creating a budget.
