For most people, life seems to be more and more intense. The needs of our time drag us in many different directions and it can be difficult to focus our time and energy on important home affairs, such as what we spend our money on every month. A simple rule of thumb for any budget is to spend less money than you are introducing. There are authors who write whole books about budgeting, but it doesn’t have to be so complicated and dry reading for hours. Here are 5 simple and effective ways to keep your monthly budget under control and move to a happier, stress-free life … with more money to spend and save!
1. create a monthly budget sheet.
This will be your roadmap to sort out your finances. Try to create a spreadsheet that covers the whole year so you can easily go back to the previous months and keep track of your progress.
The first part of the spreadsheet should be reserved for monthly accounts over which you have limited control; things like rent or mortgage, energy bills, insurance and any other things you need in life. Once you have listed these accounts, create two columns next to each other; one to document how much you expect to pay your bill and the other to document what you finally paid. Any additional amount you deduct from these two sums will become a bonus!
Then create the second part to display a list of accounts you have control over, although sometimes it doesn’t look like it does! This section should be reserved for medical bills, credit card bills and any loans you have. You can call this section “light at the end of the tunnel” because you will finally get to it using a spreadsheet! As with the first section, you must create two columns next to each of the items listed. In the first column, enter the amount you owe each month to this account, and in the second column, the total amount you owe to this account, less the payment you made. The second column is the salary column, because you can see the amount of debt reduction!
At the end there is a section about expenses, savings and income. This is where life gets a little more fun, because this is the section with the net amount you will have when you pay your bills. During the first month your heart rate may increase when you see the amount, but remember that it will be better. Over time, the amount in this section of the spreadsheet should increase as the total bills fall. Make a list of your total income and then subtract the money you have spent on the accounts to have a clear idea of how much you have left to save and spend on the things you need.
2.Watch what you spend!
Have you ever opened your empty wallet and wondered where all your money went? This happens to everyone at some point, and until you become a victim of pocket money theft or sneaky children who stole your pocket money, it’s easy to keep track of your expenses – yes, you have an idea, another spreadsheet! For this spreadsheet, all you have to do is create columns from your spending categories, such as groceries, gas, food, restaurant, home decor, entertainment and all the other things a household spends money on. Once you’ve created your categories, be honest with yourself and start keeping track of the current amount you spend on each one throughout the month. At the end of the month, some of these sums can be alarming and you’ll have an idea of what to limit yourself to ($200 spent on espresso, yuck!). For the fun of the family challenge, try to see if you can spend less in each category next month!
3. Dig for savings!
Every year, producers distribute millions of dollars in coupons so consumers can hunt for them and find them. Coupons can save a lot of money on the products you buy and increase your monthly spending budget. If you can save an average of 50 cents a day using coupons for the products you buy, that’s $182.50 back in your wallet for the whole year! You don’t have to make a career out of cutting coupons, as you see on TV for some people, but small savings here and there will lead to a huge amount of money over time.
4.Use cash, not plastic!
If you stick to your budget, you should only use the money you have. Credit card debt is one of the biggest financial problems that Americans face because it is easy to take a card to buy something you could not otherwise afford. The time has come to remove the credit cards and only use them in an emergency. To facilitate the tracking of money, create envelopes for the items you want to buy and fill them in accordingly. If there is extra money in the envelope after your monthly purchases, you can transfer it to a fund that may not be enough or hide it in your savings!
5.Understand your wishes and needs.
Need” is what you need to function in life. Food, hygiene, proper clothing and transportation are considered essential things. Thirst” is what you want to have, but your life will not change as a last resort if you do not have it. If you cannot afford the latest mobile phone, designer bag or luxury clothes, these items may be on your wish list and you can save money by buying them later. When it comes to staying within your budget, it is important to know the difference between what you want and what you need.
As long as you have a plan of action, it is easy to stay within your monthly home budget. Start by creating a spreadsheet to help you visually with your planning. This way, you can track your expenses and see where there are opportunities for savings. Then look for suggestions, use only the money you have, and understand what you want and need in life.