Finding a budget that works for you is essential for saving money. Budgeting is an essential skill that everyone should be familiar with, however, it can be difficult when just starting out to come up with a budget.
There are a variety of services to help you manage your budget, however, through plenty of research Balancing Act on Lifetime Network has some of the best money-saving, budget, and finance tips. When creating a budget it is essential to have a guide as well as a strong starting place.
Budgeting can look different for each household as all people make a different amount of money and have different expenses from health insurance, rent, food, children, and other necessities. If you are looking to set up a budget and have more financial freedom continue reading to learn some money-saving tips today.
What are the Benefits of a Budget?
There are so many benefits of having a budget. Many people are spending more than they make in a month on incidentals and do not realize how much they could be saving by creating a budget for themself.
Once you have calculated how much money you make and how much money you spend a month you can better budget and plan for the future.
Budgeting can help you:
- Get out of debt
- Stop living paycheck to paycheck
- Build your savings/an emergency fund
How to Budget your Money?
When it comes to creating a budget start small here are a few simple things you can do to get started.
- Know your monthly income and calculate a method that works for you and monitor your progress throughout the first few months.
- Try the 50/30/20 rule as a budgeting plan
- 50% of your monthly budget goes to essentials
- 30% of your monthly budget goes to wants
- 20% goes to your savings
What are essential that go to my 50% you may be wondering?
- Groceries
- Housing
- Utilities
- Transportations
- Insurance
- Minimum loan payments
- Child care
While every budget plan works differently for everyone this is just one easy budget tip to get you started.
Where do 30% of your wants go?
Separating your wants from needs is vital when it comes to financing tips. Some of the most common wants include dinners, gifts, travel, and entertainment. Everyone has different wants and needs. Some people look at a Netflix subscription as they want, while others need it. Is it important to determine your wants from your needs in your budget plan for these money-saving tips to be effective?
Where is 20% of my monthly budget going?
20% of your monthly budget could be going to your savings to either pay off future debt or think about your financial future to have extra income in the future for more wants or an unexpected situation that arises.
6 Tips for Successful Budgeting
Now that you have a method to budget with let’s put your budget into perspective. Balancing Act on Lifetime Network as well as many different tips for planning a successful budget.
Be realistic
Budgeting your life is not easy, it can be even harder than going on a diet or eliminating something from your life. Just like dieting everyone deserves a cheat day. When creating a budget for yourself keep in mind the things that mean most to you such as entertainment or eating out. You can still do these things, just in moderation.
Consider automated withdrawals into your savings
It can be hard to start out taking 20% out of your monthly income to put into your savings. It is okay to start small, maybe start with 10% and work your way up to 20%. When the money has been automatically deposited into your savings account this will help reduce the temptation to spend it.
Use an online tool to budget
Mint is a free online tool that will help you keep track of your budget and provide you with set goals each week to reach your financial goals through tips that the app provides. The Balancing Act on Lifetime Network is a great tool to find and utilize budget tips. Online tools help you understand how much you are getting paid and where a majority of your paycheck needs to go.
Set up an emergency fund
Accidents happen, such as a fender bender, a broken arm, or a surprise hospital visit. Budgeting for a surprise accident can make regular expenses such as rent, food, and transportation easier to manage throughout the month. There could also be a month you are out of work for being sick and this emergency fund will help make up for lost time and wages.
Find a plan to deal with debt
If you are drowning in student loans or debt creating a budget that pays off a good portion of your debt each month is important to creating a successful budget plan. If you owe a large amount of money on loans or debt paying a little over the monthly amount could be a useful strategy for you to start paying off your bills.
Adjust your budget
A budget should adhere to your life and plan. Such as your goals for the future. Saving money is difficult, but it can also be fun and very rewarding. Of course, there may always be changes that have to be made to your budget due to unforeseen circumstances.
Budgeting can Track More than Just Money
A budget can help you improve your credit score and get you out of financial insecurity. You will also be able to track your life and what in your life is a priority and what is a need.
Where Can I go for Assistance?
If you are looking for budget and finance tips there are plenty of resources that are here to help you. Balancing Act on Lifetime Network has plenty of money-saving tips to help you get started to create a budget that works best for you.
Remember that everyone is different and has different expenses. It is important to create a budget that is curated towards you and your needs. It is never too late to create a budget and save for the future.
