How to Manage Your Budget—4 Tips — The Kind Tips - Tips for Life, Study, Work and Entertainment

How to Manage Your Budget—4 Tips

How to Manage Your Budget—4 Tips

Everyone has a budget to set, while not everyone can manage the budget well. If you spend more money than the amount that you bring in, you may soon feel overwhelmed debts. By creating a realistic budget that based on your monthly income, you will be able to manage your debts with less effort and also, you might have little leftover money after you pay off the bills.

1. Set a budget.

When you set your monthly budget, you should have two columns in a spreadsheet. One of the columns should be the money you bring in each month, and put all the income in if you have multiple jobs. The other columns should be the money you put towards the debts. When you have these two columns set, you will know how much is left for you to spend.

2. Track your budget.

The budget tracking should be done daily. When necessary, refer to the written budget. Put down the number of every dollar you spend, which not only include the cash and credit cards you spend, but also the checks you fill out from your checkbook. Write down the numbers immediately so that you will avoid slip-ups that may result in going outside of your budget.

3. Control your spending.

Try to learn controlling of your spending. Limit the impulse shopping by giving yourself a cooling-off period. If you see something that you want to purchase but not in your budget, give yourself at least one day to think about if this item is a need rather than just a want. If it’s just a want, you can plan for the future purchase instead of breaking the budget and buy it immediately. Chances are that you save the money for an item and when you have enough budget, you don’t want it anymore, thus you save extra bucks. Also, limit the times of eating out unless you work the cost into the budget. Everything you do that is related with money should be written into the budget spreadsheet and you have to decide if you can afford it since the money allotted for each categories is fixed.

4. Use coupons and shop in secondhand stores.

Use coupons as much as you can, especially in grocery, auto care and clothing stores. The money you saved by using coupon can be put into a treat for your family. You can also save some money by shopping in secondhand stores, and the money saved can also be treat money. If you just budget and save every day, both you and your family members can feel boring, so you should occasionally make a fun purchase or give your family a treat to a special event lie a movie or a dinner out. In a word, happy budgeting!

*Image source: http://budgeting.thenest.com/manage-money-budget-3397.html

You May Also Like: