Improve Your Finances With Budgeting. Money is tight and it seems to keep getting tighter. It’s easy enough to see why, things keep getting more expensive, prices keep rising, but our paychecks never seem to quite keep up with the pace, do they? So, how do we make it in times like these? Well, even though it sometimes feels like it’s out of our control, there are some things we do control that can help us not just survive, but maybe even thrive.
One of the first things to do is take a hard look at how we are doing our banking. Is the interest we are collecting really fair, and are there things we can tweak to improve our rate? One thing to do is consider bank term deposits that will take your investment into it and give you a very attractive interest rate as long as you don’t spend it before it comes due! It’s a great way to grow a nest egg, and you will reap the rewards of patience once it matures. Just make sure you do not touch it until then, try to imagine it’s kept in a secret vault on Earth’s moon surrounded by lava- you can’t go there!
There are a lot of ways to improve our financial well-being. A great way to start saving money is to come up with a budget and stick to it.
Here are some tips to help you do that:
Keep track of exactly how much money is coming in. Also include when it arrives, and what its source is- paychecks, pensions, investments, etc.
Keep track of your expenses. Start with the ‘must pay’ you need for living listed below:
- rent or mortgage
- transport (petrol, car maintenance, public transport)
- utilities (gas, electricity, phone)
- food (yours and your pet’s)
- family (baby things, child care, school fees)
- medical (prescriptions, check-ups, insurance)
Next, come your debts:
- credit card bills
- mortgage payments
- bank loan payments
You can always expect the unexpected:
- medical bills
- veterinarian
- auto repairs
- extra school costs (sports, school trips)
Once you have your expenses figured out, it’s time to set limits on your spending.
The money you have left after your expenses is your spending and saving money and needs to be divided between the two. Your spending money is for things you want, like hobbies and entertainment. There has to be a limit on this, under no circumstances should you be adding it to your debt, which you will be actively paying down. Look at your fun funds and see if there isn’t something you can cut, like cable TV. Keep track of these non-essentials and make a budget for them to help you stay within the rails. The other portion goes toward savings, it is essential that you have an emergency fund in place, just in case! The government has some helpful tools for this. So, tighten the belt just a bit and reap the rewards later on.
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