Looking to set up your budget? Here are some tips!
Creating a budget doesn’t have to be difficult. Sticking to your budget may be a challenge, but it is important to understand if you want to manage your money. In order to gain control of your spending, you may want to consider the following:
Calculate the amount you take home monthly after taxes. Be sure to include your expected salary in addition to any other income sources, like interest and child support. This will be the basis of your budget.
To make saving easier, we recommend that you look into how you are spending your money. Be sure to track your expenses! From monthly living costs, to your morning coffee run, account for everything you spend money on. By recording what you spend in a month, you will be able to create the most realistic budget for your lifestyle.
Consider your debt
If you carry credit card balances or have student loans, considering this as part of your monthly budget will help you pay them off faster. The sooner you pay those balances off, the less interest you will have to pay. Be sure you aren’t spending more than you are making, to prevent going further into debt.
Set saving goals
Think about what you want to achieve with your money. Whether you are saving for a vacation, or to purchase a new house… keep your goals realistic in order to stay within your budget. First, you should make sure you aren’t overspending and note if you have money left over after your monthly expenses. After you get a clear picture of where your money is being spent each month, see where you are able to cut spending. Having a clear vision of your goals can ease any financial stress you may have.
To stay on track with your budget, don’t forget to record all of your expenses and income. There is no right or wrong way to record your budget. Some good options may include using a budgeting app, making a spreadsheet, or a classic paper and pencil – they all work fine. The key is making sure you stay up-to-date with your information.
If you are having a hard time setting your budget and staying on track, try thinking about it through the 50/20/30 rule. The idea here is to divide your after-tax income like this:
- 50% for necessities
- 30% for non-essentials, and…
- 20% for savings and investments.
If you find that you need to spend more on necessities, simply cut spending on things you want but don’t need.
If you push yourself to stick to your budget, you may find success in reaching your financial goals. However, don’t be too hard on yourself if the occasional ‘slip up’ happens. Just be sure to get back on the right track as soon as you can. As you continue to work on your budget, make adjustments as needed. Life happens and factors may change, but keeping your budget in line with your goals is a step towards ongoing personal success.
This is a sponsored post. This content was created and paid for by Blaze Mastercard.