0 How To Budget Your Money

My previous post talked about what to avoid when spending money in general. Pretty much most of them were basic tips as I am just starting out this blog, I thought that I should start from the basic concepts of saving money. One of the most important things I said in the post was to make a budget. It was pretty hard to elaborate the idea in a paragraph or two, and so I made this post to further broaden the subject about budgeting. Budgets are necessary evil and I must agree to that, as much as we want to spend all the fruit of our hard labor we must also take in mind that money come and go – in my case it's more of a go sad to say.

Many people have trouble saving money as it seems to go out faster than it comes in. This effect is mostly due to an unequal ratio of purchasing days to pay days. Most people only receive a pay check about twice a month, yet spend money on a daily basis. In this regard it can be difficult to keep track

of your money and save for the long run. However, there are some useful tips available to help you budget properly, helping you save on money throughout the year.

First, you'll need to start out with your monthly payments after taxes have been deducted. Calculating this amount will help you visualize exactly how much money you have at your disposal once you've done your duties to the government. With this total amount in hand, it's time to deduct the necessities. Most people have a few obligatory payments for each month such as a mortgage or rent payment, car payments, utility bills, groceries, and so on. It's best to use a monthly estimate on these numbers, and even better to use the highest estimate possible, just to be safe. For example, if you spend between $100 and $200 on groceries each month, use $200 for further calculations so you don't come up short.

After running the numbers on all of your necessary payments, you should be left with a chunk of money for everyday use. This money has no obligation and can be used for just about anything. With this sum available, you'll need to think ahead of what your savings should be used for. A lot of people suggest maintaining a considerable amount of savings in case of emergencies, and these savings should add up over time. While you can probably think of plenty of luxury items you may want to spend that cash on, it'll help to think of what you can do without for the time being, as that money should be placed towards savings.

One of the best ways to help with savings is to "trim the fat" on your daily expenses. Buying lunch at work every day can run anyone near $50 or even $100 per week. Buying items at the grocery store to substitute this habit can help save thousands of dollars every year if done properly. Also, cutting down on transportation costs can lead to a big surplus of cash throughout the month as well. If you take a bus to work each day but can get away with walking, it can benefit both your health and your wallet to hike it to work instead.

Budgeting money to create savings requires a solid evaluation of your daily spending and your regular earnings, but most anyone can accrue a decent amount of money simply by changing their habits and putting money aside. It's a great idea to have a bit of savings in case the money is needed, such as in case of emergencies or unexpected purchases. Most people don't have the luxury of impulse buying for larger ticket expenses, so having a well funded savings account can help quite considerably.