5 Ways to Budget and Save Money

Poor budgeting normally leaves us empty-handed and dependent on borrowed money.  The truth is, if you are not accustomed to preparing a budget every month, you will find yourself in massive rolling debt or wondering where your entire pay-check went. If you live on a tight budget every month with only minimal resources to get by, budgeting well will definitely save you a lot of trouble.

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Ways to Budget 

But, how do you budget with ease? Well, there are two ways I suggest. First is the paper-and-pen method. Don't get me wrong - I love technology, but many people still find it efficient to use this method. A small notebook or journal and a pen -- then you are good to go.  Second, you can rely on technology to give a hand with budgeting needs.  There are countless apps you can download that will not just help track spending, but are also efficient enough to remind you of billing due dates. Yet if you are not that tech-savvy, you can abandon the idea of using your smartphone or laptop and use a small notebook instead.

To help you facilitate budgeting with ease, consider the following pointers.

Savings First 

Deduct an instant 10% from your salary before you even start budgeting. The amount should not be included in your budget. It should be instantly set aside. Keep your savings account separate from other bank accounts as well. 

Calendar of Expenses 

Yes, budgeting is not only about subtracting expenses from salary. Timing is likewise of the essence when planning your finances and spending for the month. This is particularly true for those who live from pay check to pay check. Knowing when the money comes in and when the biggest spending goes out should always be marked so start outlining your calendar of expenses. Mark the usual due dates for utility bills, credit cards and other payables. Categorize them based on priority.  Should an emergency happen, you will instantly know which one to 'sacrifice' after referring to the list. 

List of Wants versus Needs

Never leave your house without a list of things you need to purchase at the supermarket.  Use them as entries for expenses. There are even apps which let you categorize listed items into 'wants' versus 'needs.'  

If you are trying to save for a trip or any other expenditures, make reasonable adjustments. For example, you can reduce allotted amount for takeaway coffee every morning or newspaper. Try making your own coffee or reading online instead. 

Manufactured Spending

If you have not heard of this, then today is your lucky day! Setting the cliché aside, manufactured spending lets you earn extra money from spending. For instance, use credit cards or membership cards that allow you to obtain rebates or earn points when purchasing products or paying for services. Accumulate the points and use them to save on shopping costs later on. 

Stick to the Budget

Treat your monthly budget plan as highly non-negotiable. Budget and plan your finances with discipline. Your attitude towards money is your ultimate life-saver and will keep you and your family afloat.