Personal finance budgeting tips


Proper financial planning requires good budgeting. Everybody needs to know budgeting tips. It doesn’t matter if you are earning several thousand dollars a week or you live from one paycheck to another, you need to know where your money is going. This is very important especially if you want to manage your money properly. There is a misconception about budgeting. Most people believe that budgeting is about the restriction of spending. This is not true. Budgeting about understands how much money you earn, where your money goes and planning the best way to allocate them. To help you to budget your finance properly here are some essential tips that you should know

  • Choose for simplicity

There is nothing wring listing your expenses with quicken, excel spreadsheet or in other writing software. However, if you prefer something simple you can use a traditional method that requires paper and pencil. Write it down how much money available and what monthly expenses that you have to meet

  • Set money aside to achieve a goal.

You should have a financial goal such as home appliance to purchase, luxury vacation, home remodeling and so on. In this case you have to work out on how much money required achieving your goals. Then you need to plan how much money you can save monthly. If you are interested in investing, be careful where you invest your money (by the way, you should just check out one of my favorites… Mad Money’s Jim Kramer’s personal story). If your goal is to have a nice home… be careful kitchen remodeling project, for example, can spiral out of control. Liek anything, budget and plan for some additional expenses.

  • Pay Yourself First

You have to know your monthly routine spendings like bank payment, landlord, and grocery, insurance and so on. Once you pay them, you have to pay yourself for your future. Set your money aside for future saving. When you do this as a habit, you will be able to have some significant amount on your saving account. Remember that no one will take care of your future except yourself.

  • Think before you spend

Before you spend on something, you need to think carefully. Do you need to buy it or you want it. Can you do or live without that item. The simples rule is that you need to buy the item if you cannot live without it. Never purchase something casually without proper consideration.

  • Checking and comparing utility provider.

Electricity, telephone, and gas bills are a regular bill that you need to pay on a monthly basis. In this case, you have to look for a cheaper provider available. The fact is that some provider offers a different price for the service they provide. If you can find a more affordable provider, you can use the extra for saving.

  • Use your credit card wisely.

Use your credit card only for something that you already budgeted each month. You have to pay a full bill by the due date. It is very important to avoid unnecessary spending on the interest charge.

  • Emergency fund

It is very important to set up an emergency plan. Each month you have to allocate a certain amount of money for emergency need. Once emergency need arises, you have allocated money for it. Many financial experts believe that three month worth of your income is an ideal amount for an emergency fund.

Cynthia Peters

Blogger, web designer, guy making his way through life.