How to Manage Your Budget | 5 Star Lonas
Berkeley, CA (PRWEB) June 09, 2015 -- Drawing up a budget can be a satisfying process as you will feel as though you’ve gained full control of your finances. Following the spending plan you’ve made, however, is still the most important factor when it comes to effective budgeting. Here are some tips to help you learn how to manage your budget successfully.
• Know where your money goes by keeping a close tab on your expenses. Record all expenses you make, regardless of its size, by using a spreadsheet or paper and pen. The latter might be a better choice as you can bring them anywhere. At the end of the day, compute the total amount of your expenses. Do this for at least six months.
• Group your expenses into categories. Record how much you usually spend on every category. By the end of the six-month period, you’ll have a better idea of your spending pattern and spontaneous event expenses such as buying gifts for your friend’s birthday.
• You want to reduce as much unnecessary expenditure as possible. If you want to stay within your budget, live within what you have. For instance, if you used to eat outside four times a week, you can cut it down to two.
• Determine the things you can pay for with cash every month and calculate their amounts. Divide the total by four. That will be your weekly allowance. Making weekly allowances can help you reduce your spending.
• Leave your card at home and just bring a certain amount of cash when shopping. When the cash is used up, you can’t make unnecessary expenses as you no longer have the means to do so.
• Reward yourself. If you stick to your budget, give yourself something special. Rewarding yourself makes everything easier. Just make sure to include the amount of your reward in your budget.
• Regularly check your budget. How to manage your budget includes revisiting and revising it on a regular basis. As your personal needs change, your budget needs to be adjusted too. Maybe you got a pay rise or a promotion. This may seem like a good chance to relax, but failing to include an income increase in your budget could lead to haphazard spending. Everytime something that might affect your finances happens, be sure to consider how this can be accommodated by your budget.
Once done properly, these little efforts will greatly benefit your financial state in the long run.
Gabi Taub, 5 Star Loans, http://5starloans.com/, +1 (510) 559 6906, [email protected]
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