Lastly, include your monthly net income and subtract your expenses and savings from that figure to determine your remainder each month. That remainder can be used to further build savings or be allocated to unexpected expenses that may arise over time.

Here is what a sample budget for someone earning $5,000 net monthly income may look like for reference.

Adjusting your budget

Creating a budget is only the first step in improving your savings and managing your spending. It is now up to you to adjust the way you are managing your money. Do you see certain expenses that you feel you are overspending on? We all can be guilty of overindulging on dining out too often, or even buying that extra pair of shoes; if you really want to get your spending under control, you have the power to stick to your allocated budget each month. Once you can identify expenses which you can pull back spending, you must decide where those savings get allocated – perhaps you want to max out your IRA this year, or even increase your emergency fund? Those decisions are yours to make. 

Using your budget

Over time, income and expenses will fluctuate. It is important to keep your personal budget up to date with changes in your life. If you earn a raise, or change careers, keep in mind the impact it will have on your budget and adjust as needed.

Allow your budget to help you reach your goals. Remember, one of your goals should be to keep your expenses equal to or lower than your income each month. 

Budgeting tips

If you earn income as a gig worker, or have fluctuating income each month, it is important to focus on paying down debt and increasing savings when you have a month with above average earnings. No two budgets are the same, every person has different money goals, and it is important to focus on what works for you. If you find it difficult to keep up with a budget, struggle with getting started or staying on track, consider speaking with a financial advisor or an accountant who can help you with financial planning. 

Julian Schubach is Vice President, Wealth Management at ODI Financial. Julian serves a broad range of creative clients including artists, entertainers, and digital influencers, providing comprehensive financial education, planning and wealth management. Julian's clients include multi-platinum selling musicians and producers, award winning actors, directors and choreographers and best-selling writers. In addition to his private client work, Julian provides financial education and literacy seminars to arts grant recipients and clients of arts non-profit organizations. Julian has been named a 'Top-100 Financial Advisor' by Investopedia and in 2018, Julian was a contributing writer for New York Foundation for the Arts book, 'The Profitable Artist,' penning three chapters focusing on personal finance for creatives.  Julian is a dedicated member of We Are All Music Foundation (WAAM) which provides meaningful support to the most impactful nonprofit organizations that use the power of music to improve lives and benefit society, Janie's Fund, a philanthropic initiative created by Steven Tyler in partnership with Youth Villages to bring hope and healing to girls who have suffered the trauma of abuse and neglect and Little St. Nick Foundation which helps ill children cope with their pain, fear and isolation through entertainment, education and activities. [email protected] | 516-887-7788 x105 (o) | 516-551-6353 (m) | Twitter: @julianschubach | Instagram: @julianschubach | LinkedIn: in/julianschubach