Home » Budgeting, Headline

Top Tips for Personal Finance Budgeting

12 June 2018 No Comment

Most of us hate the idea of budgeting. We may feel guilty about how much we spend, or worry constantly about bills, debts and mortgages, but the idea of getting to grips with all the figures and organizing our finances can often seem like more trouble than it’s worth. After all, if you haven’t got enough money coming in, what difference does budgeting make?

While this attitude is understandable, it is way off base. No matter what your income level, taking control of your budget is absolutely crucial to your financial wellbeing. A large part of the worry that people feel about their finances comes from not knowing exactly where they stand. By turning a spotlight on your money, and taking steps to ensure that you are using your income efficiently, it is possible to take a lot of stress out of your life. Here are some useful tips to help you get started on personal finance budgeting.

Set a budget

Work out your monthly income, list your expenses, allow a little leeway for additional costs such as leisure and unexpected bills, and there you have it. The very act of making a budget can often be a huge boost and help you to feel in control, and by sticking to your budget, you can start to improve your personal finances and rein in unnecessary spending.

Don’t punish yourself

Have you ever tried dieting? Did it work in the long term? Almost certainly, the answer is no. Diets are often doomed to fail from the start because they are only concerned with self-denial. So it is with budgets. No matter how little money you have, don’t forget to let yourself have an occasional treat or indulgence.

Maybe you like to have a try at the lottery with luckynumberpicker.com. Whether you pick your own numbers or use a lottery number picker, playing the lottery – in moderation – can be a harmless pleasure. Maybe you can treat yourself to a movie or a night out every so often. It is important not to lose sight of the fact that budgeting is about helping you get more out of life rather than shutting down all your pleasures.

Set up a financial calendar

Maybe you’re the kind of person who tends to forget to pay your taxes or to check your credit report from time to time. By setting up a simple financial calendar, on your desk or your mobile device, you won’t miss those important dates.

Look for the interest rate

Checking interest rates should be second nature to anyone trying to budget and gain control of their finances. How do you choose which loan to pay off? Which is the best savings account to set up? Why should we avoid credit card debt where possible? The answers to all of these questions involve interest rates.

Keep up to date with your net worth

What is your net worth? This is the difference between the assets that you own and your debt. It is the big-picture snapshot of your financial standing and a quick and easy way to work out how well you are doing. By keeping an eye on your net worth, you will be able to get a clear idea of whether you are going backwards or making progress towards your financial goals.

Think about an all-cash regime

These days, it is so easy to overspend. However, if you opt for an all-cash policy, then spending money that you don’t have becomes impossible. It sounds drastic and impractical, but it can be surprisingly effective, and even if you only try it for a short time, it can give you new insight into your finances and your own financial habits.

Schedule a daily “money minute”

Many people swear by the benefits of the “money minute”. Simply take a minute out of your time every day to check your spending and accounts. By getting into this habit, you can not only spot problems quickly but also help to keep spending under control.

Allocate a fifth of your income to financial priorities

These priorities should include accumulating savings, paying debt down, or adding to your retirement fund. It may seem like a lot, but it soon becomes second nature to put this money aside, and it will go a long way to helping you reach your financial targets.

Budgeting isn’t fun, let’s be honest. However, by doing the hard work and going through your budget and getting into good financial habits, you can take back control of your finances and get yourself on the right track, whatever your level of income or life situation.

Comments are closed.