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Tips on Simple Budget Planning

Tips on Simple Budget Planning
If by the end of every month, you would be feeling that you have more days left than dollars, it is the high time you had better set up a budget. By doing so, you could be clearly aware of your income and outgoing dollars and then you could have a analysis of both sides of the equation to set goals for yourself. When you are clear that one or two bills are the major causes of your financial trouble, you should do something to cut down that cost. If you find out your low income is the only reason why you are having financial stress, then you might think to change for a new job. The following are a few tips you should know so as to help build up your budget.

1.Use a Spreadsheet.

If you’re good at using some kind of financial software such as Quicken or Microsoft Money, you had better turn to a simple Excel spreadsheet to do with your budget. When using Excel, you could list the names of your bills like electricity, house rent as well as telephones in one column,and the amounts in the next column, add everything up automatically, and then you would be quite clear of what you are paying for your bills  on a monthly, weekly and yearly basis .

2. Separate Sheet for Your Interest Rates.

If you hold debt, you should regularly check your credit card interest rates, namely at least once a month when having your budget. Even a very small change to your interest rate could cost you thousands during the course of long-term budget planning and decrease the money left over at the end of the month. So you should list all of your credit cards and interest rates separately in your budget pages for quick reference and order them from highest to lowest. By doing so, you could be clearly aware of which debt you should prioritize for being paid off.

3. Reduce Your Spending.

If you intend to infuse more money into your budget, the simplest way to do it is figure out and reduce your unnecessary spending. Once you have established your budget on paper, you should take out the items that could be reduced meticulously, for example, something like groceries, entertainment, cable and cell phone minutes. At the same time, you could also learn to be more reserved about your usage patterns so as to cut down expenditures on electric and gas.