Have you ever made a budget for your expenses? If not, then
start it from today because in today’s unpredictable world, you never know what
unexpected expenses may come where you may have to cut your gas, food or any
other expenses to cover that expense,
That expense may be home repair, healthcare etc. You must have or ever had
money saving mom who always saves money by negotiating or by cutting general
expenses. I don’t want to you to be like that because it’s very difficult for
young generation to negotiate or cut their expenses. But one thing that we all
can do is make a budget. It may be weekly, monthly or yearly. It depends on how
frequently you get paid.
The first step of budgeting is to track your all incomes and
expenses. Gather all your bills, bank statements, paychecks etc. Everything
that shows money going in and out. If you wing without a budget, you spend
money on unnecessary expenses and you pass the opportunity to save money. You should have a financial goal for what you
are saving money. It may be for a vacation or new car because you are saving
money every month and it’s for a long term that is sometimes hard to reach. Your personal may look like:
There are various types of budgeting method. You may use
simple budgeting method, jar method or pay yourself first method.
·
Simple budgeting
method: In this method, you just keep track on each expense and try to
reduce expenses in the next budget. Expenses may be Food, gas, travel,
electricity, water, entertainment etc. and whatever is left with you is your
saving. In this way, you keep track on all of your expenses and incomes.
·
Jar method:
In this method, you keep a jar or an envelope for each expense and put money in
each jar or envelope accordingly. And you use that money over the period. And the
money you are left with is your saving. How cool is that but sometimes it’s
very hard to follow this method because prices may go up. Then you have to take
out money from your saving.
·
Pay yourself
first method: in this method, you take a part of money from your income as
a saving and use the rest of the money to cover your routine expenses. This method
is a very good method as it teaches youngsters how to spend money wisely.
Here is a reason why we should follow a budget:
Believe me you can't do this to save money. Must watch this-->
I know it’s little hard to follow a budget. Okay, let’s take
a poll, how many of you can strictly follow a budget. If not many, then I have
a couple of another way to help you yo reduce your expenses or increase your saving. It’s
on you, how you take it?
·
You can save money on your food by taking a
ready-made shopping list at a grocery store and buy according to your list. This
will save you a lot of money if you look at figures over a long period because
you won’t realize much saving on a single grocery bill.
·
If you go to vacations every year, then plan
that in advance by saving money for that and by making a booking in advance. Don’t
be dumb by going on vacations on a debt and by making an immediate booking.
·
If you have some debt and at the same time you
have money in your saving account or any other investment because I may sure
that you will be paying more interest than you are earning.
·
Do you have a mommy who collects coupons in a
box and saves a huge amount of money. Get in a habit of collecting coupons
because they save a lot of money.
·
Prepare to minimize your bills. Cut your
expenses where you think it’s unnecessary. Start by looking at your bills and
see where are you wasting your money. For example, you may be paying an annual
fee on your credit card or your saving account and then you may switch to other
bank where there is no fee.
More tips to save money-->http://stayathomemoms.about.com/od/moneymatters/tp/living-on-a-budget.htm
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