Are you parents who struggle every month to keep a budget? Are you stressed about being able to pay bills, even if your income is good? Are you wondering if there is a better way? Yes, there is and begins with a philosophy! Here are the five steps to this budgeting philosophy for young families. Check out.
Budget Step 1: Understand what you need to live
Calculate how much money you need to live. Your needs include rent, food and fuel for your car. Generally, write down how much you need by looking at your past expenses. The total number may be smaller than you think, which will give you a more flexible budget.
Budget Step 2: Treat savings as a necessary expense
Start treating the savings as a necessary expense in your budget. By adopting this thought you can guarantee a saving emergency fund every month. It is recommended 10% of your income to start. And if you can not do 10%, try 5%. You are wondering how you will have a social life doing this, but think about what happens if your car breaks down or if your cell phone falls into the water. By saving money for some unforeseen, you can still continue paying your necessary expenses without going into debt and staying in tight for months.
Budget Step 3: Do not predict income
If the money is not in your account, do not plan on using what you do not have. It just does not make sense. Use the money you already own. This can be difficult to do when starting, you may have to cut your expenses with leisure, for example. But once this occurs, your stress decreases significantly because you can be confident that you already have money for next month’s expenses.
Budget Step 4: Make no mistake
Everyone knows you may need to save money to do some maintenance on your home or renew your cable TV subscription. Why not save part of your budget a little each month instead of trying to figure out how to pay for them when they come up surprisingly. This part is a bit more labor-intensive but book $ 30 or more per month for Christmas gifts from January prepares you for Christmas in December, avoiding surprises and headaches. Understanding your annual expenses allows you to be proactive when it comes to planning for any such expenses.
Budget Step 5: Your budget is net, not frozen
We all know that every month presents different needs financially. For example, a month, you may need new clothes or spend with medications for a possible cold. Because the different months present different scenarios, we need to be adaptable within our budget to allow this. Having a flexible budget means finding an area in your budget, where you can have a change space within a month.
Having a budget can be very time consuming and annoying, but you just need to be proactive … which can be some sacrifice at first, it will still be worth it. You will feel less stressed and more comfortable with what you are spending your money on. There are many great tools available for budgeting, use Google for a search and search for spreadsheets or apps that can help you. Just do not stand still.
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