How to Organize Your Budget in a Few Minutes
Don’t think that budgeting is something overly complicated – it’s just like a business plan without start and end. Here 5 steps that you can easily follow and you will no longer get to the end of the month with lots of loans, debts to all your friends and no money in your pocket.
1. Always spend less than you make! (Take 0 minutes). If you’ve received an increase of 100 dollars and you have already made plans for 200 dollars, is exactly as you received a penalty!
2. Find out what you spend your money on (5 minute/day). You can write on a sheet of paper all the things that you spent the money on during the week. Multiply it by four in order to get a snapshot of monthly spending and do not forget to add maintenance, light, phone and any other expenses.
3. Make a shopping list (18 minutes). Write everything you need to buy / pay for six months from now. Once you listed all the important spendings, gather them all and split to six. This is the amount you will need to put aside every month just for them. That way you will know exactly how much of your salary should be put away from the start.
4. Hide money from yourself! – (3 minutes). Give them to your mother, invest in a fund with very low risk, do whatever you know, only to keep away from taking money, even in season of reductions! If you have them in your wallet or on the account you are currently using, you will have the false impression that you have a lot of money and they will run out as soon as possible.
5. See where the sparkles are! – (21 minutes). Look at the list of your monthly expenses. Where does the most part of money go? Where do you waste more? If 80% of the budget falls in the category Clothing, it will not be hard to see where you have to leave easier.
As an experiment, try to live each day with half of the amount you normally spend. After a week you get used to look more closely at the prices, look for cheaper stores and products on promotion and this way you will save more!