Do you know where your money is going every month? If not, then that’s a huge mistake that you are doing. Start to track your expenses Today.
No Matter how much money you make, budgeting is the only way to keep control on your financial pattern. Often, people who are making a decent salary cannot get out of the vicious cycle of living paycheck to paycheck — and the reason why is because they are not tracking where all their money is going.
How often do you realize by the end of the month that you couldn't save the money that you planned to save?.
Every great financial plan starts with a word budget. If you’re trying to pay off your bills and start saving mponey for a dream vacation, a budget is your first step toward making your dreams into a reality..
1. Calulate you total Expenses
Your first step towards saving money is finding out exactly how much you’re spending each month. You can do this by glancing your bank statements and bills. Add up everything you spent for the last six to 12 months and then divide by the amount of months, which will give you your average monthly expenses..
2. Set Goals
Figure out what your priorities are for both the Short and long-term plans. For example, buying a house, buying a car, a big vacation, emergency savings, retirement etc fall under long-term plans. Pay the bills and loans are
the short term plans.
3. Find the amount you Earn and the Amount you spend.
Now you have calculated how you are spending on everything, it’s time to figure out how much is coming in and where it’s all going each month. This will help you identify expenses that need to be tracked often.
4. Plan a Budget
Now you will have a clear picture of the total money coming in and the money going out, you can start tracking your expenses and then create your budget based on what you should be spending on most.
The less you spend on the expenses you can control, the quicker you’ll get out of debt and/or be able to save more towards your goals.