3 Simple Ways Budgets Save Money
When it comes to finances, everyone has trouble with budgeting their money. We wrote about it before here. It’s hard to budget our money, so don’t panic – you’re not the only one. Budgets save money. Whether we spend too much on a monthly basis, or can’t keep up with our current bills, people are consistently running into issues with their financial planning. Don’t worry though, even the government struggles to maintain their budget.
Budgets become increasingly important as you age. Because they help provide you with the ability to live a life of financial freedom, it’s necessary. The ability to not live paycheck to paycheck, and live comfortably. In order to do so, we have to pay off our accumulated debt and build up a substantial amount of savings. Below are 3 Simple Ways Budgets Save Money. With some tips for putting together a realistic and beneficial budget to get yourself on track.
Track Before You Regulate
Spending unnecessarily is a lot like having an unhealthy diet; before you can make lasting improvements, you need to know exactly what shape you’re in. By tracking your expenses the same way you would track calories, you can determine where your money is going. It is easy to say that you will lose weight if you stop eating junk food or that you will save by cutting out all superfluous spending, but those goals are simply unrealistic for novices. So track, record, analyze, but do not try to regulate anything just yet.
Start Saving Whatever You Can
The best way to ensure that you will save money regularly is by having your bank automatically place 10% of your paycheck into your savings account and spend money exclusively with cash. Nothing shows you quite how quickly you burn through money like carrying cash on you. Not to mention, with this automatic and unprompted method of saving money through the bank, it is no longer your own personal responsibility to make sure you reallocate those funds. So you are becoming more cognizant of your own spending habits and keeping yourself from blowing through all of your income each month.
Allocate Funds Appropriately
On average, roughly 35% of your income should be dedicated to household needs. Things like groceries and utility bills. In conjunction with the ten percent you now have dedicated towards savings, you have now taken 45% of your monthly income and created a healthy method of spending. With the rest of your funds, you can allocate them towards debts.
This is a start of a series of articles including simple ways budgets save money. Please stay tuned for more. And for some more advice check out
