BUDGETING sounds like something requiring loads of money and an expensive financial planner. Relax, it is just finding a way to budget that allows you to decide how much personal income to set aside.
Personal finance budgeting programs and better money managing strategies will help you achieve the goals you have set for yourself.
You will get the satisfaction of being able to watch your progress, whatever that may be. Maybe a new car. Maybe a new house. How about some extra wiggle room at the end of the month?? Try to make a personal budget soon!
DIFFERENT KIND OF BUDGET
GOOD BUDGET is a spending plan that includes everything you will spend money on and stays within your income.
BAD BUDGET is spending much everything that is not practically needed. e.g stuffs, and more.
WISE BUDGET includes everything you will spend money on, savings for a “rainy day”, savings for large purchases, giving, saving for kids, and investment for retirement and still stays within your income.
WHY BUDGET?
If we don't budget, we do not know what happen our cash flow that to assure our money is enough to feed our needs.We lose control of our expenses and can't even figure out where the money went. Worse, yet....we can't figure out where we'll get the money to cover that big bill we forgot was coming.
Budget to Save Money For:
- Save money for the future.
- Save money for emergencies.
- Become financially stable and secure.
- For future expenses.
- Paying debts.
- Planning for business.
Budgeting money, keeping track of what is in your wallet, is essential to gaining wealth and save wealth in your resources as will. And try to find another way to make money to gain more and fit for your personality. Don`t go into this thinking GLOOM and DOOM. Your wallet is a vehicle to your financial goals.
How to create a budget?
Before you begin to create your budget it is important to realize that in order to be successful you have to provide as much detailed information as possible
. Ultimately, the end result will be able to show where your money is coming from, how much is there and where it is all going.
Create budget is not sounds like the most exciting things or activities in this world to do, but it is a vital in keeping your financial to be financially stable.
1. Review your budget monthly. It is important to review your budget on a regular basis to make sure you are staying on track. After the first month take a minute to sit down and compare the actual expenses versus what you had created in the budget. This will show you where you did well and where you may need to improve.
2.Total you monthly income and monthly expenses. If you end result shows more income than expenses you are off to good start. This means you can prioritize this excess to areas of your budget such as retirement savings or paying more on credits cards to eliminate that debt faster.
3.Record all of your sources of income. If you are a self-employed or have any outside sources of income be sure to record these as well. If your income is in the form of regular paycheck where taxes are automatically deducted then using the net income, or take home pay, amount is fine.Record this total income as a monthly income amount.
4.Make adjustments to expenses. If you have accurately identified and listed all of you expenses the ultimate goal would be to have your income and expense columns to be equal. This means all of your income is accounted for and budgeted for a specific expense.
5.Gather every financial information you can. Includes Bank statement, investment accounts.
Tips on BUDGETING: ENVELOPE SYSTEM
The envelope budgeting system is a very simple budgeting trick. They key to the system is sticking to it.
How to Start This Envelope Budgeting System.?
Use this idea for expenses that have some flexibility in them.You mortgage and car payments and the like are fixed. You do not have any options when paying these expenses. However a certain amount of grocery bills, light bills, water bills and clothing expenses fall within you discretionary spending.
1. Decide how much of your budget you to intend to spend on each of your chosen categories.
2. Label an envelope with the name of the bill(or expense) and place your budget allowance in it.
3. Paying for your purchase in cash has a different impact than a debit card or credit card. It feels it hurts more.
When that money is spent, you are done with that expenses for the month.
That`s it, no cheating. No adding money to the envelope.! Only use the money in any labeled envelope for what it was budgeted for. No stealing from you other envelopes.
(Robbing Juan to pay Maria )
Try to beat your personal budget projection and save extra money for something special later on.!
This System really works forces you to see where your money is going.
HOW TO ELIMINATE DEBT?
1. First step is stop using credit card, if you use credit cards must be paid on or before the due.
2. Stop buying stuff you don`t NEED. Impulse buying is a budget killer. The only way to get a handle on your debt is to start a budget and stop frivolous spending.
Everyone can use some tips on budgeting. As much as the world may hate to admit it, there is no such thing as a money tree. And chances are you are not going to strike it rich anytime soon. You need to learn how to save more money.
That is why it is so important every person and family create a budget that works for them.
Not only will you be able to save up for the things you truly want by budgeting living expenses, you will guard yourself from debt that could haunt you for years to come.
Practical Money Saving Tips
1.To make the most out of your new limitations, become a smart shopper. The next time you visit your favorite store, ask to join their mailing list, if such a thing is available. In doing this you are likely to receive exclusive discounts and coupons in the future.
2.Instead of eating out three times week, slash it to once a week, but choose a place that everyone can enjoy and get something from.
3.Instead of going out to the movies, opt for a movie night at home.
4.Try budget cooking for a crowd and freeze leftovers for later.
5.Avoid paying retail and instead wait for sales both online and offline. Again, do not attempt to live beyond your means; this is a typical mistake that can only bring trouble to the table.
QUOTES:
Focusing your life solely on making a bucks shows a prov
erty of ambition. It asks too little of yourself. And it will leave you unfilled. -(BARACK OBAMA)
That man is richest whose pleasure are cheapest. -Henry Thoreau
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