A budget puts you in control of your money, and the great part about them is you can adjust them to your needs. That said, here are 7 best budgeting practices to help you better manage your money! by Clever Girl Finance 1. Set clear goals: When you set clear financial goals, you can stay on track and better understand your spending. Goalsetting is a great way to know how much money you need to save or put towards your debt. For setting clear goals, we recommend the SMART Goal Method. It stands for:
In any budget, you have two types of expenses: non-variable and variable. Non-variable expenses are payments that never change, like your rent. Variable expenses fluctuate, such as gas, groceries, and clothing. By including non-variable and variable expenses in your budget, you can build your budget based on realistic numbers. 3. Find a system for budgeting that works for you: When choosing a budgeting style, consider what might work best for you. For instance, the cash envelope method works well if you are more of a visual person and want to focus on saving money. Fortunately, there are many different systems to choose from. Some more popular budgets include zero-based, 50-30-20, or the reverse budgeting method. Experiment with different budgets until you find the right one for your current life stage and personality. 4. Remember to pay yourself first: You should always practice paying yourself first, no matter the system you choose. For example, paying yourself first ensures you contribute to your 401(K) at work before deciding anything else. It can also look like ensuring you have an adequate emergency fund set aside or making a credit card payment when you receive your paycheck. 5. Create space in your budget for miscellaneous expenses: We cannot predict the future; as much as we try to, unexpected things will happen. This is why you should create a miscellaneous category in your budget. It will help you put aside extra money when life throws a surprise or two at you. 6. Do regular check-ins with your budget as often as needed: When you start budgeting, you may get overwhelmed with tracking your expenses. This is why checking in as often as necessary to see where your money is going is essential. Evaluating your spending in real-time can relieve you from end-of-the-month stress. 7. Adjust your budget when your life or income changes: If you decide to pivot the direction of your life, it makes sense that your old budget won’t fit your new needs. You could also get a pay raise or a new job that affects your income; this could also cause a budget change. Your budget will evolve over time, and it'll help keep you on track with whatever you want or need to achieve. ... Finding the best budgeting practices that work will help you gain financial wellness (and stability). Try different methods, adjust categories, or make more income to help when you can’t cut back anymore. Budgeting can help you you can live a life you love. Call Catherine on 0411 849 804 to see how much you will need to save to buy your own home.
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Message from CAtherineOccasionally I come across an interesting article to do with Home Loans. I thought I'd share some of these with you here. Archives
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