Is your head spinning out of control from figuring out why you ran out of money before the end of the month? Are you living from paycheck to paycheck?
Whether your current job is your first or your fifth, creating and maintaining a budget is key to your financial success. And creating an easy budget that works well for you will keep you from going crazy.
I remember my first part-time job as a high school student. My first payday came, and I was excited with the money I earned. Thankfully, I had wise parent’s who were always striving to teach their children the importance of saving.
Watching each check add up over the course of several months was an incredible experience in my youth. I also remember my first full-time job when I was living on my own. My responsibilities were now making sure rent was paid on time, utilities, cell phone, insurance, and more.
During each phase in our lives, we all have the need to create and reevaluate our personal budgets. Here are 6 incredible tips for creating an easy budget. These tips will help you organize your finances and set you on the path towards financial freedom. Tip number 6 is key to maintaining your financial success.
6 Incredible Tips for Creating an Easy Budget
1. List Income
Write down your expected monthly income, the sources of revenue, and the date you will receive this money. By doing this, it will give you a financial overview of your money for the month. Don’t over-guess but be as precise and accurate as possible.
I like to do this on the 1st day of each new month so I can begin planning for upcoming expenses. If your monthly amount does not change, then take the time each month to review your income and make sure it’s an accurate reflection of the money coming into your home.
2. List Expenses
Now you need to ask yourself, where is my money going? What bills do you pay? Write down the bills (car insurance, cell phone, monthly magazine and movie subscriptions, and so forth) and the amount. Also, write the due dates next to the amount, so you know when you need to pay the bill before incurring late fees.
Prioritize your money and your expenses. Are there any expenses you can do without? Can you do without your monthly magazine subscription? Can you eliminate eating out from your budget? What are some of the ways you can do to make your money go farther?
The key is to keep as much money as you can, not to see how much you can spend. Spending money is easy but keeping your money can prove difficult.
4. Eliminate Debt
Pay off your debt as quickly as possible. As you make purchases on credit, you are also being charged interest. By paying off your debt, you are saving yourself money in interest rates. You are also helping to improve your credit score.
It is important you set a certain amount each pay period aside to place in a savings account. Use this money as an emergency fund for when you need to make a larger purchase.
Don’t panic if you don’t feel like you have money to save from each paycheck. The amount doesn’t matter, but the habit of saving is one of the keys to financial success. Start with $5 from each paycheck, if you can save more then great, if not, then save $3 or $1 from each paycheck. Something is better than nothing.
6. Stick With It
Be committed. Stay with your budget and maintain the discipline to keep your new spending and saving habits. The most important thing about creating a simple budget is to keep and maintain your budget.
Remember to spend time once a month to review your expenses and income. Adjust your budget as needed and recommit yourself to your financial independence.
As you list all of your monthly income, write down your expenses, prioritize your necessities versus your wants, eliminate debt, add money to your savings, and stay committed you will travel down the road to financial freedom and independence.
Do you have a money saving tip? Leave a comment and let us know.
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