The first step in creating a monthly personal budget is to determine how much of your monthly income will be spent on wants and needs. This expenditure is known as outgoings. This includes both optional and mandatory spending. The goal is to have the monthly outgoings less than the monthly income. Use this guide to calculate your monthly outgoings.

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### Things you need

- Bank statements
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- Receipts
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## Instructions

- 1
Write down your monthly housing expenses. Include your mortgage or rent payments, all utilities (water, heat, electricity, TV, Internet) as well as any other fees associated with your living. Add all these amounts together and make note of the sum.

- 2
Calculate your monthly credit card payments. Don't use the minimum payment amounts, but rather the amount you actually pay.

- 3
Calculate your monthly living expenses. Determine the amount of money you spend on food and transportation. Use receipts or bank statements to find the average amount spent on shopping, eating out, petrol, train or bus tickets, and parking fees. Add these amounts and write them down.

- 4
Determine the amount of extra money spent each month. This is where you'll calculate money spent on entertainment, gym memberships, subscriptions. Write down any extra expenditures, no matter how big or small.

- 5
Add up the totals from steps 1 through 4. This is your monthly outgoings. The same process can be used in a smaller capacity for weekly budgeting or used as the basis for yearly budgets. To determine leftover money each month, subtract the monthly outgoings from your net monthly income.