For many people, budgeting is considered a task that is boring or may not be of use. Many believe that living above their means will prove they are better than others, however, this practice is not helping when trying to develop a good financial future. Some may experience an issue in sticking with a budgeting or saving plan that is easy to maintain. There is also the question of How do I budget/save?
Here are some clues on how to start a budget/savings:
-Record your monthly expenses: this will give you a good look into how much money you spend per day, week, and even month.
-Cut spending: check for areas where you can substitute or stop spending unnecessarily in order to free funds.
-Determine a schedule for paying off any debts: this clue will help factor in any debts or bills that are due, how long it will take to pay them off, and how it will affect your budgeting.
-Identify a savings goal: know where you want your savings account to be within the next 3 months to a year, then work from there. It is also helpful to set milestone achievements you may reach in your savings goals.
Here are some tips to help with budgeting and saving money:
-Look for better deals on important items such as insurance and other bills.
-Set aside a budget amount for entertainment, food, etc.
-Factor special occasions like birthdays, anniversaries, annual vacations, and holidays.
-Be sure to leave room for funds to carry over into the next pay period.
-Set up automatic payments for bills.
-Start an emergency fund.
Sources: –https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/ways-to-save-money
–https://www.fool.com/investing/2018/04/21/budgeting-101-how-to-start-budgeting-for-the-first.aspx
