With our economy still in a wreck and unemployment rates at an all time high, it is important for people to budget their finances. My tips for budgeting your finances are designed for those of which have no idea how to budget and or have no time to figure out a budget. For us to stay in control of our finances it's very important that we stick to a set budget! Here are 7 Tips For Budgeting Your Finances.
1. Make It a Priority
If you're a procrastinator like me, making it a priority to set your budget is one of the most important things in budgeting your finances. If you tip toe around setting your budget you're often going to find yourself out of money, unable to make purchases you desire, or worst case scenario unable to pay for things that are a necessity. I cannot stress enough the importance of making your budget and finances one of your top priorities.
2. Make a List of Your Income
In able to budget your finances you're going to have to first figure out your total income. If you're single or married make a list of all of the income that will be used for paying for the bills and necessities. On the list make sure to include the dates of when said income is being paid. Marking the dates next to the income will help you in adding a time frame to your budgeting calendar.
3. Make a List of Your Bills
It is important to know which bills need to be paid and when they are due when you're budgeting your finances. So you have your list of income for your household now you need to figure out your list of bills and dates they are due. Compare your list of your income with your list of your bills. Figure out which days you are going to pay which bills making sure that you are paying your bills on time and not leaving yourself completely broke.
4. Make a List of Your Expenses
Sure your income and bills seem like the most important thing in budgeting your finances however expenses besides regular bills should also be taken into consideration on a time frame. Expenses being toiletries, skin care products, house hold cleaning products, and food. When you have an idea of how much you are spending a month on these things you have a better idea of how you should shop. When you make itemized lists for all of your expenses it's more organized and prevents you from spending hours shopping and over spending.
5. Stick to Your Budget
The point of budgeting your finances is limiting yourself from over spending and wasting money. It is important to set your budget based off of your lists of bills and other expenses The main importance in setting the budget is so that you stick to the budget. If you don't stick to your budget than there isn't a point in you even setting it to begin with. The point of budgeting your finances is that you want to keep your money in order.
6. Get a Savings Account
Emergencies can happen to everyone and it's important to be prepared for them. It is important once you've gone through your itemized lists of bills and expenses to set aside money into an account that won't be touched for emergencies. When emergencies happen they can put a big dent in your financial situation especially if after you've figured out your bills you don't have much left over. Saving money in this account for these emergencies enable you to take care of it without taking away from your bills and necessities.
7. Set Some Goals
So you've covered your bills, you've covered your regular expenses, you've covered you're emergency funds, what about play? If you're not that financially better off and don't have much money to spend on yourself it's important to set goals for the things you'd like to purchase. Set a goal for an item you want and make sure to save what you can weekly towards the item's cost. This will ensure that you stay on top of your finances, learn a little discipline with your finances, and also can reward yourself in the end for budgeting so wisely.
I hope you've been financially enlightened with my 7 Tips For Budgeting Your Finances. As you have read it's very important to set a budget and those who procrastinate will most likely find themselves buried in bills and stressing over money which is not a style of life anyone would be interested in. Which area of budgeting your finances do you find to be the most stressful?
Top image source: 1.bp.blogspot.com