When someone creates a budget, he or she knows how much money they bring in and what they spend. This allows them to be more mindful when it comes to their funds, which is a practice that the likes of Robert Jain can recommend. Budgeting is a worthwhile practice to carry out, but there are a few ways to ensure that it's done well. For the uninitiated, here are some do's and don'ts that you would be wise to follow.
DO keep track of your expenses with spreadsheets. The digital age has brought a number of luxuries, with some being more useful than others. Spreadsheets should be included in this umbrella, as they can be used to keep track of various stats. The ones associated with budgeting are included, so make sure that you keep your records in these spreadsheets on a regular basis. Names such as Bobby Jain will tell you to do the same.
DON'T discredit the importance of needs versus wants. As a matter of fact, this can make all the difference when it comes to budgeting. When buying anything, you should determine if it's a need or a want first. If it's something that you cannot be without, like food or toiletries, it's a need that should be prioritized. If it's a luxury item that would be nice to have, but not necessary, it's a want to be set aside until you can confidently invest in it.
DO be prepared for the unexpected. What if you suffer some kind of medical emergency, like a broken leg? In this situation, you'll want to have an account to fall back on, which is where budgeting comes into play. With each paycheck, you should save a certain amount of money that will go into an emergency account. This will not be touched for general purposes. Only in emergencies like the aforementioned example should it be used.
DON'T forget to review your spendings. No matter how confident you might be, as far as budgeting is concerned, you should review your spendings all the same. Make sure that you do this at the beginning of each month so that you have a clear understanding of how much you've spent the month prior. If you feel like there is room for improvement, make note of it so that you can apply such changes in the future.
DO keep track of your expenses with spreadsheets. The digital age has brought a number of luxuries, with some being more useful than others. Spreadsheets should be included in this umbrella, as they can be used to keep track of various stats. The ones associated with budgeting are included, so make sure that you keep your records in these spreadsheets on a regular basis. Names such as Bobby Jain will tell you to do the same.
DON'T discredit the importance of needs versus wants. As a matter of fact, this can make all the difference when it comes to budgeting. When buying anything, you should determine if it's a need or a want first. If it's something that you cannot be without, like food or toiletries, it's a need that should be prioritized. If it's a luxury item that would be nice to have, but not necessary, it's a want to be set aside until you can confidently invest in it.
DO be prepared for the unexpected. What if you suffer some kind of medical emergency, like a broken leg? In this situation, you'll want to have an account to fall back on, which is where budgeting comes into play. With each paycheck, you should save a certain amount of money that will go into an emergency account. This will not be touched for general purposes. Only in emergencies like the aforementioned example should it be used.
DON'T forget to review your spendings. No matter how confident you might be, as far as budgeting is concerned, you should review your spendings all the same. Make sure that you do this at the beginning of each month so that you have a clear understanding of how much you've spent the month prior. If you feel like there is room for improvement, make note of it so that you can apply such changes in the future.
ليست هناك تعليقات:
إرسال تعليق