A guide on how to budget money everyday for you to spend your money wisely! In order for you to budget your hard earned money properly, you must make a budget plan beginning today.
If you are one of the millions of people who are not good in budgeting money, then this post will somehow help you on how to budget your money everyday, per week or even per month or annually. There are rules in budgeting money, which we will discuss them one by one here, not only the rules but also the things that should be written in your budget plan according to your life style. Before you will going to learn some things about budgeting money, you must know first the ways on how to save money, for how can you budget your money wisely if you don’t know how to save. Am i right? I know you get the “common sense”.See Also: Do Rich People Manage Their Money?
Must Read: Household Budget Worksheet: 5 Free Budget Spreadsheets & Templates
After you have read the article about saving, then this is the time you have to learn budgeting, now you’re ready. Okay, so how do you save money? Is it on the bank, in your wallet, in your closet or jewelry box, as a review, it is better to save money in the bank, am i right? At least it will give interest rate, it will help you grow your money because of interest rates.
Rule # 1 in Budgeting Money is “PAY YOURSELF FIRST”.
That’s the reason why I want you to read “save money article”, because you have to set aside for your savings and retirement plan, or set aside money for your financial goal, in order for you to follow this rule “pay yourself first”.
You must know where and when is the best time to invest money, the concept of this rule is to “prioritize your savings and investment”, before anything else.
Rule # 2 in Budgeting Money is Know the Right Formula
Hey, do you know the right formula to become financially free? If you don’t know yet, let me tell you, I just read this on the financial books I have read, it tells that when you receive money (maybe salary / other source of income) you must set aside first the money for investment and savings.
Income – Savings = Expenses
The excess money after you set aside the money for savings and investment is the one you will use for expenses. I hope you got it. You can read the millionaires mindset for success to know what I am talking about in this rule.
Rule # 3 in Budgeting Money is You Must Have a Detailed Budget Plan
Now, the last rule is you must budget your money in details, you must know where it is ging and when and where to use, some example of expenses can be classified as;
Savings and Investment Fund (Priority)- use for retirement, and use to achieve your financial goal and your goal to become rich.
Emergency Fund (Health Funds) – these are funds use in case of emergencies, unexpected events.
Food, Laundry and Cosmetics Budget – use as they are, food, cosmetics, laundry., your everyday basic needs
Transportation and Communication Budget – use in transportation, car maintenance, car gas, cellphone load, internet connections etc.
Education (Tuition Fees and Miscellaneous Fees) – this is very important, you must invest in education, give your kids the right to formal education, a fund also use for allowances.
Utility Bills – electricity, water bills etc.
Rule # 4 in Budgeting Money is Buy NEEDS not WANTS!
You must buy only the needs, not wants. If you will buy the things that you don’t need, someday you will sell the things that is really necessary to live your life comfortably. I am not easily get attracted to new gadgets, instead I am attracted to low price of stock shares or low price of mutual funds in my favorite company.
If You Budget Money Everyday, Amazing Things will Happen
I am going to enjoy my life later, rather than enjoying my life today and my family life in the future is very great because we are planning for it. Please read how to retire a millionaire so you will know what I am talking about.
We have different point of view about budgeting our money, this is just an idea, follow it or not, it’s up to you. But mind you, I know where I am going! Now you know how to budget your money everyday, follow the tips above and soon you will notice a big improvement on your personal finances.See Also: Does 401k Make Sense?