How to Budget with Ease in 5 Steps...Yes, that's Possible!
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Poor budgeting normally leaves us empty-handed and dependent on cash advance and loans. The truth is, if you are not accustomed to making a budget every month, you will find yourself in massive rolling debt or wondering where your entire paycheck went. If you live on a tight budget every month with only minimal resources to get by, budgeting well will save you a lot of trouble.
But, do you really budget with ease? Well, there are two ways. First is the paper-and-pen method. Don't get me wrong - I love technology, but many people still find it efficient to use this method. A small notebook or journal and a pen -- then you are good to go. Secondly, you can rely on technology to give you a hand with your budgeting needs. There is now a range of apps you can download that will not just help you track your spending, but are also efficient enough to remind you of your due dates. If you are not that tech-savvy, again, you can abandon the idea of using your smartphone or laptop and use a small notebook instead.
To help you facilitate budgeting with ease, you can consider the following pointers.
1. Saving. Deduct an instant 10% from your salary before you even start budgeting. This amount should not be included in your budget. It should be instantly set aside. Have a separate account for your savings.
2. Calendar. Yes, budgeting is not only about subtracting your expenses from your salary. Timing is likewise of the essence when planning your finances and spending for the month. This is particularly true for those who live paycheck-to-check. Knowing when the money comes in and when the biggest spending goes out should always be marked on your calendar. Start outlining your calendar of expenses. Mark the usual due dates for your utility bills and credit cards. Categorize them based on their priorities. Should an emergency happens, you would instantly know which one to 'sacrifice'.
3. Lists. Never list your house without a list of things you need to purchase at the supermarket. Use them as entries for expenses on your app. It is much better to use an app that lets you categorize your items into 'wants' and 'needs.' If you are trying to save for a trip, then make REASONABLE adjustments. You can reduce your allotted amount for your takeaway coffee every morning or newspaper. Try making your own coffee or reading online instead.
4. Manufactured Spending. If you have not heard of this, then today is your lucky day! Setting such cliche aside, manufactured spending lets you earn extra money from spending. For instance, use your credit cards that allow you obtain rebates when purchasing groceries or gas. Accumulate the points. In a few months, you will have a few hundred of dollars to save and spend.
5. Stick to the budget. Treat your monthly budget plan as highly non-negotiable. Budget and plan your finances with discipline. Your attitude towards money is your ultimate life-saver and will keep you and your family afloat.