Budgeting Doesn’t Have To Be A Nightmare
When we say the word budgeting, we bet your mind automatically fills with dread. It can feel like a huge nightmare when you know you have to budget because you have to be careful with the money that you have. However, that doesn’t mean that you can’t still enjoy life and the things that you want, you’ve just got to be a little more careful about your spending. If you want to know more about budgeting and the reason it doesn’t have to be a nightmare, keep reading down below.
Work It All Out
The first thing that you’re going to need to do is work it all out. To do this, you need to write down how much money you have coming in, and then write down how much money you have going out. When you’ve done this, compare the totals and subtract the amount going out from the amount coming in. Whatever is left is what you have for the rest of the month. This can be used for whatever you want, including luxuries that you have had your eyes on.
Make sure that in your list, you include things like food shopping, any money you need to spend on an insurance policy, all the bills you need to pay, and so on. Go through your list multiple times to make sure that you haven’t missed anything off because once you’ve got your budget sorted, you don’t want to keep changing it.
Set Some Aside
The next thing that we suggest you do, if possible, is set some money aside once you’ve worked out what you’re going to have next. The reason for this is that you never know when you’re going to need some extra cash, and if you spend it all on those little luxuries, then you might not have enough to cover your emergency. As such, the best thing that you can do is take a small amount per month and put it into a separate account that should be used when you have an emergency.
This could be anything from your boiler breaking down, to something getting damaged that needs repairing as soon as possible.
Leave Some Wiggle Room
Finally, we would highly recommend leaving yourself some wiggle room with your budget. Once you know what you have left, and then you’ve put aside some money for a rainy day, try to ensure you don’t empty the budget. What we mean by this is don’t go overboard on those luxuries we spoke about and leave yourself with nothing. At the end of the day, it’s up to you, but you never know if you might find something else later down the line that you want. It’s better to keep some back rather than spend it all at once.
We hope that you have found this article helpful, and now see that budgeting doesn’t have to be a nightmare. Put this advice into practice, and you’ll find it a lot easier to manage your money. Good luck!