Mika
VIP Contributor
A budget is the single most effective tool to manage your money. When you are able to manage your money, you can not only save money but also start investing. When you are saving and investing, you will grow your net worth and become a financially stable individual.
The number one rule is to create a monthly budget. In your budget, you should include your all income and expenses. If your previous month's budget showed a negative balance sheet, try to reduce your expenses.
In order to create a better budget, you should use the rule of 50/30/20, where you allot 50 percent budgetary expenditure on your necessities, 30 percent on your wants, and 20 percent on investment and savings. If your expenses do not fit within this rule, look through your bank statement or credit card statement and start cutting your expenses.
The third most important rule in creating a better budget is to pay off your debt. If you don’t pay off your debt, you will be wasting a lot of money just on interest.
The number one rule is to create a monthly budget. In your budget, you should include your all income and expenses. If your previous month's budget showed a negative balance sheet, try to reduce your expenses.
In order to create a better budget, you should use the rule of 50/30/20, where you allot 50 percent budgetary expenditure on your necessities, 30 percent on your wants, and 20 percent on investment and savings. If your expenses do not fit within this rule, look through your bank statement or credit card statement and start cutting your expenses.
The third most important rule in creating a better budget is to pay off your debt. If you don’t pay off your debt, you will be wasting a lot of money just on interest.