Financial discipline isn’t just about avoiding spending traps. You have to set a budget and stick to it to make your money work for you.
Tips for Budgeting Your Money
It is always better to build a financial discipline from an early age.
Simple tips for budgeting your money
• The monthly bills should be known and understood clearly. They reveal the status of one’s way of living. They give ideas of extraordinary expenditure and where expenses can be reduced or more expenditure can be done in other fields.
• The next step is to set a goal to save some amount of money. This may be to fulfill ambitions of having a house or buying a car. Keep adding to the amount and surely at one stage the goal can be achieved. This is the part of the savings account which maybe with a company or in the bank.
• Next some money should be kept aside as personal fund — which will help in purchasing books, clothes, entertainment and for travel. All these savings will please one to look forward for some fun. These expenditures should be done wisely when sales discounts and deals are available in the e market.
• One can be generous to help others who are in need, but not unwise in giving huge amounts just for fame, even when one are living on a tight budget.
Tips for budgeting your money are simple, safe and rewarding…Hence it is advisable to follow some guidelines with the hard earned money in hand.
Now the question arises how to make and follow the budget?
A simple system of bookkeeping will help in knowing the amount of money coming and the amount of money spent. This will also help one to live within the means.
Keep a notebook to keep recording daily expenditure under different heads –small or big. The notes will give an idea of the money spent. Sometimes one realizes that lot of money is wastes on useless items.
One must get into the habit of preserving all receipts of payments made. These will be helpful if some expenditure is not noted.
If extra money is spent the other step to start saving on things like having lunches outside and consuming many cups of coffee. This can be easily reduced by taking lunch from home and cutting down on coffee consumption.
If entertaining guest in restaurants is exceeding, this can be done from home to
cut the cost.