Who knew that the best way to budget is to spend less money than you make? This is obviously a no brainer to some but others have those spending fingers and think that putting money on the credit card with no way to pay it off will eventually sort itself out. Unfortunately it doesn’t quite work like that unless you get lucky and figure out a good backup plan. I get it, when making big purchases like a car or house- you might need a little help from the bank and that is perfectly ok or you can learn more about getting a loan right away! However, some people really struggle with budgeting and that’s okay. If you have never been taught it is hard to understand the concept of budgeting your money for later. Today is the day you will learn the best tips on budgeting so you can save some money for those big purchases you have been looking forward to you whole life.
Top 5 Tips To Budget:
1) Look after your debt first. If you know that you have rental payments that need to be paid at the first of every month, it’s important that you have enough money in the bank so you can continue living with a roof over your head. This goes with your Internet bills; water bills, phone bills and whatever bills you need to pay in order to live a quality life. Then whatever money you have left over after you have put food and water on the table- then you have that to spend on the other stuff.
2) Account for every dollar. You might think that buying a $5.00 coffee is ok everyday, but you have to remember that $5.00 does add up if you are spending that on coffee everyday. It doesn’t seem like much in one day but when you add up coffee everyday times by $5.00, you have actually spent $150.00 each month on buying coffee. It’s not that much but if you are short on rent each month than that might be something that you have to cut out of your budget.
3) Don’t be embarrassed to use a piggy bank. Start from scratch and save up your pennies. Your dollars will look after themselves. Whenever you come home and you have some change, or you come into a bit of extra money- put it away for a rainy day. Maybe something in your house will break down, than what? You need some extra money to fix it or replace it.
4) Focus on the big picture. Don’t spend money for the sake of spending money. If you really need something buy it and save up the rest of your money for something like a house or your child’s education down the road. It’s always important to look at the end picture when debating about spending money on foolish items.
5) You can always adjust your budget. Do not think since you created a budget that you have to stick with it for the rest of your life. Things in your life change and so should your budget. Just be aware of how much you are making and spending and adjust accordingly.