There comes a time in adulthood where you decide a budget is a good idea. It’s usually when you realise that you are living paycheck to paycheck and you are always running out of cash. Many people don’t like the idea of budgeting, because they find it restrictive, but it’s actually a great way to manage those restrictions and learn how to spend your money wisely.
The thing is, budgeting is going to free up your money because you’re going to see where it all goes. When you start to question what are level funded health plans, you aren’t looking at the costs of things properly! So, you need to look at the things that you pay for each month and remember the following five things when you are budgeting.
Yourself Count
Before you pay anyone else, pay yourself. Put your slice of cash into your savings account before you pay any bills each month. You will need to consider this as an investment in your future, and you will be able to see what else you have left to play with at the end of the month. Paying yourself is going to change how you spend your cash – just remember that you come first.
Socials Budget
If you love going out with friends, you can still do it – you just need to include a social budget in your main budget. Don’t go cold turkey to quit something you love – you’ll only fail and want to spend all the money you have! Treats matter, so you have to allocate cash to those treats, much as you would calories in your diet.
Keep a eye on your Debt
Don’t forget your debts when you are doing your budget. If your repayments feel high, get a consolidation loan and make your debt repayments simple with one payment per month. You can easily fit this into your budget, and you can aggressively pay off debt without thinking about it too much.
Respect your Goals
Honour your personal goals. If you have things that you want in life, you need to set money aside for it.when you don’t have any set goals, you’re going to have empty money each month. Set yourself some personal goals and learn to pay them on time each month. Think of goals like you would your bills: they are an essential, so budget for it!
Your Best Budget
Some months, you’re going to suck at budgeting. The key is to make sure that you get back on it the next month. If you overspend in one area, just look at it like a lesson and make it easier on yourself next time. You may have extra expenses some months and not others, but that doesn’t mean that you should continue to be radical about your spending. Curb it early and you will avoid overspending every single month. If your car had a flat tyre, you wouldn’t slash the other three tyres to even it out – so don’t ruin your progress with your budget if you mess up just once!
Be safe out there.
Stanley
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