Making a budget is not a one time action, it’s an interactive, evolving, flexible plan that requires your ongoing attention.

You’ll experience many life changes, from getting pay rises to moving houses. As you go through these events, your budget will come along with you. And even when you’re not going through a change in your life, your budget may need to.

After all, your finances aren’t static. Even fixed income and expenses can change. For example, new tax laws can change your take-home pay even if your salary stays the same.

Other items that get deducted from your pay could increase, resulting in less take home pay.

On the expense side, even steady expenses like your rent or mortgage payment can increase periodically. And inflation almost always hits expenses harder than income,
meaning your regular monthly costs will go up faster than your salary.

First, you have to build your initial budget based on the information you have now, your current income and expenses.

But don’t leave it there. As your financial situation changes or you decide to manage your money differently, you must make appropriate changes to your budget.