| Budgeting Tips |
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| Written by Gregory E. Rouse |
| Saturday, 30 May 2009 14:19 |
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Money can disappear so fast if you don't manage it. It's amazing how all the nickel and dime stuff adds up. My old friend use to say, "money is like gas it expands to fill the space".
Money can disappear so fast if you don't manage it. It's amazing how all the nickel and dime stuff adds up. My old friend use to say, "money is like gas it expands to fill the space". During his life where he lost income, it always seemed to work and at times when income increased it always got spent. In my life, I've had the opportunity to look at a lot of people's finances and what's interesting is that it doesn't seem to matter how much money you make. I've seen a family making $30,000/yr doing just fine and then a family making $300,000/yr getting behind each month, along with every thing in between. So what this told me is that it doesn't matter what you make, it matters more how you manage what you make. "If you fail to plan, you plan to fail". A budget is basically a plan for your money, so let's see how to plan. What you need is a list of what you're currently spending and then right next to it, a list of what your budget goals are or the budget you want. It's called an "actual" and "planned" budget format. Here's some tips to help: Every cent should be allocated! Your budget should always balance. If not, the extra will disappear or "expand to fill its space". A "spending cash" item is essential. For example, say you only have an extra $5 every month, but you don't budget it and so when you're out you stop and buy something to eat and then your spouse does the same and now you're over the budget. Sound familiar? If budgeted most people have a tendency to stay on track. There's been times in my life when the budget only allowed for a few dollars, so my wife would get half and I got the other half. She would go garage selling with her half, so she could get her shopping fix, and I would buy off the dollar menu. The key here is to not be surprised at the end of the month and know what you're going to spend beforehand. Budget for a specific period of time (such as weekly or monthly) according to your pay schedule. If income and expenses vary from week to week or month to month, prepare a new budget each and every pay period, until you can become stable. Finally "If you fail to plan, you plan to fail". DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Are you stressing about finances? Find some relief, visit this frugal living skills site for simple methods to cut costs with all kinds of budgeting tips. Plus, find cheap meals and how to feed a family of 8 for under $5. |