A little goes a long wa

A little goes a long way: Smart secrets to budgeting

There’s nothing more we want than to be able to efficiently

manage our money. After all, the money that we want to

manage is money that is oftentimes, hard earned. This is

where a budget comes in. A budget executed properly, should

help you see where your money is going, get more utility out

of every buck, and help you save some extra for future use.

The first smart secret to a budget is to set a goal. What do you

want to achieve? Do you want to correctly appropriate your

income into bills payments? Do you want to put an amount

aside for a big purchase or a huge investment? By having a

goal, you will be able to shape your budget to best serve your

interests.

Secondly, you would want to take note of where your money

usually goes. This includes bills, major but regular purchases (like grocery costs, healthcare

costs, and the like), and everyday miscellaneous purchases. Only when you list down

where you know your money usually goes will you be able to identify which expenses you

can do without. Once you’ve identified these regular expenditures, take into consideration

what you can cut back on. How much do you spend on your daily caffeine fix in the

morning? How much do you spend on newspaper deliveries to your front door? The measly

$2 or $5 of these small purchases cumulatively translates to more than $3600 a year!

Instead of buying your expensive latte or reading the newspaper on print, put aside the

amount you would usually pay for these small routine purchases in a small container. You

will be surprised at how much you’re saving out of your older budget.

Being indebted is a vicious cycle on its own. You’re talking about continuous payments, not

to mention huge interest rates. The best way to deal with this is to pay the minimum on all

of your debts in order to avoid paying extraneous late fees. Whatever cash excesses you

may have, you can opt to add on to the payments you make in your biggest debt. This

way, you are concentrated on getting the biggest debts first that cost you the greatest

interest rates. Doing this progressively, you’ll be amazed at how much you’ll get off your

huge debts.

The last and most important step is to jot down the amount you earn the sum you spend.

You can make use of computer cash management programs, or make database sheets of

your own. Make a system that works for you and will help you keep track of your monthly

budgeting progress.