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How To Budget Money
By Leeanne Utiger
Knowing how to budget money and your finances will make every day living a whole lot more manageable, and ultimately enjoyable. It will eliminate the stress that surrounds living costs and bills/accounts that need/require paying.
To begin with, you will need to sit down with no disturbances and make a note of all income you receive weekly. Then create a list of every outgoing expense you have weekly. This should include expenses such as, your rent/mortgage, electricity or gas bill (maybe both), telephone bill, grocery costs, petrol costs you use per week and any other hidden routine weekly costs. A budget should cover every little expense you can think of, and you cover regularly on a weekly basis.
Once you have listed all the expenses you incur on a weekly basis, then you have to place beside the right field of expense what the total cost is for that particular outgoing each and every week. You then need to see if what you earn does in fact cover what you have going out weekly. If it doesn't, then you will have to come to some form of credit arrangement with some of your debtors, and therefore have a payment arrangement made, which keeps you happy weekly, along with the person or company you owe money to weekly. This normally is not a problem and is quite easily arranged. On doing this, you can then offer to them what you can afford, to keep a small balance over for anything needed that may arise out of the blue. Or just simply for some quiet entertainment.
Stick to your budget, making sure you pay who you are meant to be paying on time each and every week, until you have either cleared a temporary debt or are keeping in line with an arrangement you have with a company or business or supplier.
Always make sure you have enough budgeted aside for food, especially more-so if you are a parent with children. There is nothing worse than not being able to put food on the table for your children at any given time of the day.
Try to include within your budget a bare minimum amount that you can deposit into a separate bank account. This is to safeguard yourself against any major or even minor repairs that may need to be done to a vehicle or a household appliance. You never can tell when something is going to break down or become unusable again. An account like this can also help you at times with accounts that you only receive every so often. Car registration , or getting a warrant of fitness certificate for your car. These are things that you can opt to cover costs for at your own discretion. Car Registration can be covered from 3 monthly to 24 monthly in some countries for example.
Other things to budget for, but not necessarily pay out for each and every week are doctors visit or unexpected medical emergencies or requirements. If you put a little aside each and every week for such arising circumstances, you will in fact already have the funds readily available to you to cover the expense of such visits or needs.
Clothing is another thing to budget for weekly. As with the budgeting for doctor visits or medical requirements, it does not have to be a large amount placed aside, just a small contribution towards this is all that is needed. You do not have to clothe shop each and every week, but when you do choose to do so, you once again have the funds readily on hand to head out and do so, without the stress of feeling like you are breaking the bank, or spending more than you should be.
Limit yourself to how much you place aside for entertainment, and never, ever, go over this budget. Once you have spent your entertainment funds, that has to be it. Sometimes you need to be hard on yourself, but believe me, at the end of the day, it really is a wise and intelligent move on your behalf to know how to budget, and budget successfully.
See Also:
For further advice on how to budget money, see:
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