greenieS
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Get the right tools
If your budget idea is a handwritten and hard-to-read list, you'll have a pleasant surprise. There are plenty of apps available to make budgeting and tracking easier, and some use video game-inspired apps to make the process more fun. Choose any format that makes you feel more comfortable, so you can use it for as long as possible.
Start with your own resources
It goes without saying that you can't create a budget until you've established your starting point. For those who have a salary, then this can be easily determined. But for hourly-paying employees or for those who work for themselves, and have varying incomes, it can be more difficult. An intermediate way would be to average the last 6 months to 1 year, use this figure or choose the lowest amount earned for any eventuality. Include only regular income and not money from foreign jobs or hobbies that you do not you can depend.
Divides all expenses
Calculate your recurring monthly payments, such as rent, utilities, car expenses, etc. Once you're done with the obvious expenses, it's time to find out how much you're actually consuming. The best way to make sure you don't forget anything - by contributing to the common coffee fund at work or to a regular after-school treatment for children - is to keep track of absolutely all your expenses for a month. After you get this total, divide your costs into fixed and variable expenses.
Start with the basics
With a better understanding of your income and expenses you can set your budget. Try a 50/30/20 budget plan, in which 50% of your income goes to needs and 30% goes to savings or debt repayment goals. But don't forget to budget a portion of your income for a treat, not just for your needs. As in a diet, if you try to be too restrictive, you may succumb to a greater temptation. So, consider a 20% amount for a little comfort and entertainment.
Raise money for yourself first
The problem many people face is that by the time you finish paying for everything else - from utilities to daily coffee - there may not be enough left over for savings. So choose to set aside your savings and then start spending. Set aside some of your income as soon as you get it and transfer this money before you spend anything else to make sure your financial goals are met.
Check your budget every week
Tracking your budget can take an hour or more each week, but it will save you a lot of time in the long run. Take the time to examine your accounts and see where you meet your goals and where you exceed your budget. And if you find extra money in your budget, put it to work by adding it to your savings, emergency fund, or debt repayment. Not only will this build your discipline, but you will see your savings faster by motivating yourself to meet your goals.
Be realistic
Life is full of surprises, so don't be discouraged when you have unplanned expenses. Instead, make sure you include enough money in your budget for an emergency fund to cover something like a broken appliance, car repairs, or an unexpected illness. Having a reserve will mean being able to pay what you need without taking on any debts or pushing your goals even further.
Setting up a budget may seem overwhelming at first, but with a good plan, you'll be on the right track to financial freedom before you know it.
If your budget idea is a handwritten and hard-to-read list, you'll have a pleasant surprise. There are plenty of apps available to make budgeting and tracking easier, and some use video game-inspired apps to make the process more fun. Choose any format that makes you feel more comfortable, so you can use it for as long as possible.
Start with your own resources
It goes without saying that you can't create a budget until you've established your starting point. For those who have a salary, then this can be easily determined. But for hourly-paying employees or for those who work for themselves, and have varying incomes, it can be more difficult. An intermediate way would be to average the last 6 months to 1 year, use this figure or choose the lowest amount earned for any eventuality. Include only regular income and not money from foreign jobs or hobbies that you do not you can depend.
Divides all expenses
Calculate your recurring monthly payments, such as rent, utilities, car expenses, etc. Once you're done with the obvious expenses, it's time to find out how much you're actually consuming. The best way to make sure you don't forget anything - by contributing to the common coffee fund at work or to a regular after-school treatment for children - is to keep track of absolutely all your expenses for a month. After you get this total, divide your costs into fixed and variable expenses.
Start with the basics
With a better understanding of your income and expenses you can set your budget. Try a 50/30/20 budget plan, in which 50% of your income goes to needs and 30% goes to savings or debt repayment goals. But don't forget to budget a portion of your income for a treat, not just for your needs. As in a diet, if you try to be too restrictive, you may succumb to a greater temptation. So, consider a 20% amount for a little comfort and entertainment.
Raise money for yourself first
The problem many people face is that by the time you finish paying for everything else - from utilities to daily coffee - there may not be enough left over for savings. So choose to set aside your savings and then start spending. Set aside some of your income as soon as you get it and transfer this money before you spend anything else to make sure your financial goals are met.
Check your budget every week
Tracking your budget can take an hour or more each week, but it will save you a lot of time in the long run. Take the time to examine your accounts and see where you meet your goals and where you exceed your budget. And if you find extra money in your budget, put it to work by adding it to your savings, emergency fund, or debt repayment. Not only will this build your discipline, but you will see your savings faster by motivating yourself to meet your goals.
Be realistic
Life is full of surprises, so don't be discouraged when you have unplanned expenses. Instead, make sure you include enough money in your budget for an emergency fund to cover something like a broken appliance, car repairs, or an unexpected illness. Having a reserve will mean being able to pay what you need without taking on any debts or pushing your goals even further.
Setting up a budget may seem overwhelming at first, but with a good plan, you'll be on the right track to financial freedom before you know it.
