Going Back to the Basics of Budgeting

When you’re swamped with bills plus debts, it’s really time for you to get back to basics and budget your money the old-school fashion. While you might think that having to do this is so un-cool, extremely elementary and even a bit insulting, most of us have become so accustomed to spending that we no longer know how to keep cash from vanishing from our bankbooks. Just like how a fast can really cleanse your palate and allow you to appreciate food in a much different way, budgeting will allow you to get back to the basics and really enjoy controlling your finances.

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1. Come up with a budget in between regular intervals.

Regardless of whether you get paid on a bimonthly basis or weekly, it’s crucial that you come up with a budget regularly. Not only will this really solidify budgeting as a habit but it will also make it easier for you to stick to your financial plan as well. Because you know exactly how you will spend your money once you receive it, shopping sprees and impulse purchases just because you have cash that hasn’t been appropriated are more likely to be curbed.

2. Rely on lists.

It’s not enough for you to just mentally note things down because unless you have something which you can visually see each and every day, you’re prone to breaking your budget. Categorize all of your expenses and create a list accordingly. Make sure that you include every debt that you have even if you’re only paying minimum. Coming up with a list ensures that you know exactly where every dime of your paycheck is going and make the necessary modifications if you must.

3. Divide your large expenses.

When it comes to expenses like rent or utilities, it might be daunting to have to come up with the entire month from just one paycheck. What you can do to make these large expenses seem less terrifying is to divide the amount with the number of times you’ll be paid within one month and set aside that certain amount during every paycheck. This way coming up with huge payments whether for rent or electric bills won’t be that challenging anymore.

4.  Plan on how you’ll use your leftover money.

You can always designate your extra money for savings or as flex money. In a perfect world, individuals should set aside thirty percent of their paycheck as part of their savings but ten percent would do just fine. On the other hand, flex money is defined as extra money which you can use in case your actual expenses total more than what you anticipated.

Anthony Roberts offers financial advices on how to save and ways to be debt-free. Learn more about his insights. Visit BradLoans.com

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