How to – Budget Like a pro
Set a budget period
This is the starting point for every other goal in your life. Setting up a budget plan is the foundation of your finances. Above all do it on a monthly basis.
Consider an all-cash diet
If you’re consistently overspending, this will break you out of that rut. For instance, break your money up into spend sectors. Have a look at our “Envelope System” article.
Take a weekly money minute
Set aside one minute each week to check on your financial transactions. This 60-second act helps identify problems immediately, in addition to keeping track of goal progress. It helps set your spending tone for the next week!
Revise your financial priorities
Building up emergency savings, paying off debt, and padding your retirement nest egg.
Divide your fixed and variable expenses up
Fixed expenses—Bond/rent, car loan, insurances (health, life, car, home), loans, credit cards and overdraft. Don’t forget education and medical aid.
Variable expenses—utilities, food/consumer goods and spending money. But make sure you stick to those estimates when spending the money each month.
Make spending adjustments
What are the least necessary things that you are spending your money on? Is there anything that you are spending money on right now that you don’t need?
Limit credit card use
A credit card should not be used to cover the shortfall of your monthly expenses. It will create unhealthy spending habits and a pile of debt.
Be a money-savvy consumer
Comparison shop — the internet makes it easy to look up the price of an item at multiple stores or online shops to figure out where it is offered at the best price.
While budgeting may not always seem like an easy thing to do, by taking these simple steps today, you can start planning for a secure financial future tomorrow. Remember, even the smallest actions can add up to huge differences down the line.
Until next time.
The MoneyShop Team
This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.