Budgeting is the key to achieve your goals and take control of your life so it is time to start to do it, if you have not done it yet ;)
Budgeting is the key to take control of your life.
First of all Congratulations for taking the step in the right direction, you have started researching information on how to budget and this is so important.
At the end of this blog I will leave some very useful links that I use every year to do my budgeting of the year and month. I hope you enjoy the reading and my advise.
Anticipate Changes – If you have any large changes that you can reasonably anticipate, like a college tuition bill or a new mortgage, incorporate it into your plans as early as possible. Don't forget to incorporate positive changes as well – for example, any anticipated raises, extra income or a tax return money.
Make Reasonable Estimates – Shift expenses a bit toward the high side, and income a bit toward the low side. This goes against human nature, but this gives you a cushion in case things do not go as planned.
Set up a Budget Tracking Tool - Force yourself to keep track of your expenses. you can use some of the following tools:
Option 1: Get a Budgeting diary where you can track all your Expenses.
Option 2: Download an app that will help you to track your expenses and sync your bank account and cash expenses. (I personally use Money wallet here in the UK, but you can use any other you prefer and also depending upon the country you live in)
Set New Goals – Revise your goals based on your review and proposed changes. For example, you may decide to accelerate your savings to meet a down payment goal for a home, assuming that interest rates are going to rise again next year (a pretty reasonable bet, we think).
Check Your Credit Score and Credit Report – Your credit score affects the interest rates you qualify for on credit cards, mortgages, and other types of loans. A bad score can wreck your budget, preventing you from getting credit and increasing the amount of interest you have to pay every month. In my personal opinion the best credit score checker and helping hand to increase your credit score is an app called Clear Score.
Adjust Your Budget Accordingly – With your new goals and assumptions in hand, adjust your budget to handle next year's situation. A monthly budget works best for many people but choose whatever time frame works best for you.Stick to the fiscal discipline of your budget throughout the year, and you will achieve your yearly goals.
As promised here are the links that I found very useful when budgeting:
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HAVE A WONDERFUL DAY!
Tatiana
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