The Art Of Budgeting

Budgeting is a process to control your money. Some tips to budget your money.

Goal

Before having a very simple budget think of a financial goal you want to achieve. Are you want to have 100.000 dolar in end of the year?, have a car?, do you want to buy a house?. The reason why make your goal is important because by make your goal it will be your motivation to save  your money to achieve your goal. It is like finding an inspiration among it all. And having one is ideal

Track your money

 list down the things that you bought and the income you received. You can list it in a notebook. Every day for a month (I know this is tiring) see to it you get to track everything you buy from groceries. Keep a copy of your bills and take note of the receipts. Having this will let you identify your spending habit and will also dictate your budget. Then subtract your expenses to your income. Crossing my fingers it is positive. That means your income covers your expenses which is good. If it is negative, then perhaps you might want to go back to your expenses and check which ones do you spend more.

Create your budget

After you make a list of what you buy and where your money go, now time to your budget. Limit your spending for what you don’t need. Make your saving percentages, I highly suggest 20% of your income. But if you could go more much better.

Divide the Percentage

The only items you need to divide would be the 20% savings and the 70% expenses according to the example above. The 20% savings can then be divided to investments, insurance and emergency funds. Your call as to how much. Same goes with your expenses. Identify how much will go to your bills, groceries and more.

Sitck to the budget

 If you think you would get overboard with your budget, remember the first step. Rekindle why you are doing the budgeting again. Even if you miss out on something because you didn't spend, always remember that you would be gaining in the end. Keep yourself inspired by looking back at that tangible goal. Replay it when you are in the verge of spending.

Say yes to reward. 

Now I know we are talking about budgeting and sticking to it however, it is always ideal to also give yourself a little reward every now and then. For instance, if you have saved above 20% for the month, why not manage to get your favorite latte. Do not go overboard however with the rewards or you might be exhausting your expenses percentage. Keep it at a minimum.

So that some tips to budget your money, hope this useful for you.