So you figured out your income and expenses and have started to budget around it, now comes the next step, keeping track of your money and how to maintain a budget month to month.
There are a few things you can do to keep track of the flow of your money and make certain that you are sticking to your budget. Set goals for yourself. This will allow you too feel the satisfaction of accomplishment. If you set a goal to save money for something important like a vacation or a new car, you will be able to save more effectively and carefully. Another tip is to set appointments. You can do this two or three times a month so you can review your budget and make sure you are on the right path. This can be created into family time, get everyone in your household involved as previously mentioned. Begin to pay attention to the areas where spending is most important so you know where your priorities are in your budget and where money is really needed.
You have reviewed your expenses, created a budget journal, and now learned how to keep track of your funds. You are on your way to having a successful budget and a better understanding of where your money goes.
If things are tight at home, we can adjust our lives so we can save more for what is important in life.
Here are a few money saving tips:
– Pack a lunch to work instead of buying one.
– Take the bus instead of driving.
– Shop for clothes out of season.
– And of course before making a purchase ask yourself – “Do I need it?” “Do I need it now?”
Consider getting everyone in your family involved. They’ll feel included in the overall household choices. Having children involved helps educate them about money which enables them to make good financial choices for their future.
By reducing your expenses, it will mean more money at the end of the month and improved personal finances.
After we figure out where our money goes, where we are overspending, and how much money is coming in, it is time to adjust our budget accordingly. We have recognized the importance of our finance and now it is time to figure out where our money is needed most.
Finding practical ways to reduce our spending is one of the most important steps in the budgeting process. Having a budget journal will help us be organized and keep track of our income and expenses. We can categorize our expenses and split them between personal and household expenses. Household expenses may include mortgage, utilities, insurance, car payments, groceries, and so on. Personal expenses may include entertainment, dining out, gifts, etc. We can also consider investing a small percentage of our pay cheques in savings for a rainy day or for the future.
Tomorrow we’ll explore a few thrifty saving ideas!
Creating a monthly spending plan is our first step to recognize where we are with our expenses.
Next, we need to gather all our information such as bank statements, bills, and receipts and accurately look at where our money is going. In addition to this, we also need to know how much money is coming in from our jobs.
Keeping a budget may be difficult in the beginning, but continuously working through it makes it easier. Budgeting shouldn’t restrict our everyday lives, but just redirect some of our money in areas where we need it most.
For some of us, we live paycheque to paycheque and sometimes don’t understand where our money goes. Having a budget is the best way to manage our monthly spending. It helps keep track of expenses and squeeze the most out of our income. Budgeting is an important component of our lives and it helps us in the long run as well plan for our future.
Headlines continuously remind us of the financial struggles in our economy, therefore it is important to keep in mind any financial concerns we have, and deal with it before it gets us too far down the drain. It is important to take time to sit down and understand where we are with our expenses as well as the state of our finances.
Over the next few days we will be providing some tips on how to create and manage a monthly spending plan to organize your finances.