Budget your Way Through the New Year
When it comes to saving money, it can sometimes be a struggle. You want to save money, but you also have bills to pay and you also want to enjoy your money. At the end of each month you always wonder where all your money went. It is now time to keep track of your spending and come up with a plan to lower your expenses and increase your savings.
What is a budget?
A budget is a record of every dollar you have. Allocating your money to the necessities, and savings. This allows financial freedom and alleviates the stress of worrying about your money.
How to Monthly Budget
When setting a monthly budget a good way to start is following a simple 50/30/20 budgeting plan
- Calculate your monthly income, pick a budgeting method and monitor your progress.
- Allow up to 50% of your income for needs.
- Commit 30% of your income to savings and debt repayment.
- Leave 20% of your income for wants.
- Track and manage your budget through regular check-ins..
Understand the Budgeting Process
Figure out your after-tax income: If you get a regular paycheck, the amount you receive is probably it,
Choose a budgeting plan: Any budget must cover all of your needs, some of your wants and — this is key savings for emergencies and the future budgeting plan examples include the envelope system and the zero-based budget.
Track your progress: Record your spending or use online budgeting and savings tools.
Automate your savings: Automate as much as possible so the money you’ve allocated for a specific purpose gets there with minimal effort on your part. An accountability partner or online support group can help, so that you’re held accountable for choices that blow the budget.
Practice budget management: Your income, expenses and priorities will change over time, so actively manage your budget by revisiting it regularly, perhaps once a quarter. If you’re struggling to stick with your plan, try these budgeting tips.
Be aware of where your money is going. We like the simplicity of this plan. Over the long term, someone who follows these guidelines will have manageable debt, room to indulge occasionally, and savings to pay irregular or unexpected expenses and retire comfortably.
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