Creating and Managing Your Personal Budget, Part 4

Manage your budgets properlyCreating and Managing Your Personal Budget, Part 4              

Continued from “Creating and Managing Your Personal Budget, Part 3”

  Start Saving!

Saving for the future sounds great but if you’ve got bills to pay each month, how can you save any money?

It is very important to plan for your savings when planning your budget. Before you pay any bills, if you pay yourself a portion of your income you will grow richer each month. The portion may be relatively small but if you can cater for this monthly payment on a regular basis, you might be able to increase those payments.

Deposit this amount into a dedicated savings account before paying any bills. You must take this savings payment at the start of each month from your salary. If you wait until the end of the month, there may not be enough money left to save. Paying yourself first will provide you with a systematic way to make your savings money grow and tell you how much you have left for the month.

Regardless of your profession or your income, this system will work if you stick to it. Another technique that works for me is to put any change you have in your pocket at the end of each day into a container and at the end of the month invest it into your saving account.

A lot of people spend what they have in their pocket as they deem it to be “spare”, but if you don’t have any change, you may think twice and ask yourself  “Do I actually need this?”. You’ll be surprised at how much you can save in this way and you probably won’t even miss the money.

Unfortunately any monetary budgets are not immune from the normal external influences of your life and surroundings. However hard you try to maintain your budget limit each month, there may be some months where the budget cannot be maintained.

This is OK as long as you learn from the “other” external influences and are able to adjust your future budget to compensate. If the budget is not maintained on a regular basis, the whole level of the priorities may need to be reviewed, but the odd time is not too bad.

The main purpose of a budget is to make the money you have go the furthest it possibly can to help you reach your goals. Budgets are trial and error and will probably need adjusting from time to time.

Your budget may not work perfectly from day 1 and may require modifications to ensure it fits best with your needs. Make sure you review your budget on a regular basis to make sure it is making the best use of your available money and suits your ever-changing needs and compensates for any external changes that may affect you.

 

Continued in “Creating and Managing Your Personal Budget, Part 5”

About admin