Budgeting money is something most of us have to do at some point. Unless you’re independently wealthy, and even then budgeting is a normal occurrence, it is important to have a way of keeping your expenses realistic and following through in order to not come up short when you need money. Here are a few tips that will help you create a budget and follow it.
Start Out Simple
The easiest way to ease into a budget is by simply writing down what you spend. If you keep a checkbook, it is easier to start because you already have your items written down. If you do not keep a checkbook, get one anyway. Even if you don’t write checks or use an ATM card, you can still make a notation of everything you spend and when you spend it.
Make a List and Check it Twice
One of the first things that should be done when creating a budget is to make a list. A good idea is to have a master list where the normal occurring expenses are added. Then, you will want to add money for emergencies and money for recreational purposes. According to LearnVest, a good idea is to add your fixed costs, financial goals and flexible spending. Each of these list items should be added because if you only add in your fixed costs, then your flexible spending may get out of hand or you may not have enough allotted for an emergency that comes up.
Use Whatever Necessary to Make Things Easier
A good idea, according to the CNN Money is to make things simple. If it makes it easier to use budgeting software, go ahead. Not everyone is a natural when it comes to money matters so whatever works for you, whether it be a simple written list or a software program that helps you budget, is an ideal solution as long as your budget is made.
A Budget Allows You to See Exactly Where Your Money is Being Spent
Whether it’s a daily coffee from a coffee shop, ATM charges or movie rentals, these costs can add up considerably over a year or even a month’s time. Without a budget, you may not even notice the extra charges piling up and start to wonder where your money goes each month. By utilizing these moneytips.com, you will have a better handle on exactly where each and every dollar is being spent and remember that something that only costs a few dollars adds up to hundreds of dollars before you even realize it. For instance, if you buy a $4 coffee every work day and work five days a week, then $80 a month is being spent on just that one indulgence. At over $4,000 for the year, you could have made a major purchase instead.
No matter how you work out your budget, it is imperative to start one. Not only will it show you where your money is going but it will help you plan for the future.
