Budgeting is when someone calculates how much money they spend versus what they bring in, before creating a strategy to ensure that the former doesn't exceed the latter. This is a common practice, not only among those that are careful with money but people that are considerably wealthy as well. Budgeting allows you to save money, but there are a few ways to go about it well. Here are some do's & don'ts offered by Robert Jain.
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 forget to differentiate needs and wants. Ask yourself a question when you're about to purchase something: do I need this? If you're starting a new office job, a laptop computer may be needed. However, if you want to go away for a vacation, this can be considered a want, therefore making it less essential when looking at the bigger picture. Differentiating needs and wants will make budgeting considerably easier.
DO keep yourself covered for worst-case scenarios. As you budget, you should set money aside to be placed in an emergency account. This can be used for any situation that unexpectedly occurs, like a broken bone or any health complication you may think of. An emergency account can help you cover the costs without you having to pay out of pocket. You may find yourself overspending otherwise, so build your emergency account as soon as possible.
DON'T budget without reviewing. Perhaps the best way to go about budgeting is by reviewing how much you've spent the month before. This will provide you with a clear understanding of where you are, from a financial standpoint. It will also help you make changes that will, in the future, help you save even more money. By keeping this information in mind, budgeting will prove to be an even more effortless endeavor.
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 forget to differentiate needs and wants. Ask yourself a question when you're about to purchase something: do I need this? If you're starting a new office job, a laptop computer may be needed. However, if you want to go away for a vacation, this can be considered a want, therefore making it less essential when looking at the bigger picture. Differentiating needs and wants will make budgeting considerably easier.
DO keep yourself covered for worst-case scenarios. As you budget, you should set money aside to be placed in an emergency account. This can be used for any situation that unexpectedly occurs, like a broken bone or any health complication you may think of. An emergency account can help you cover the costs without you having to pay out of pocket. You may find yourself overspending otherwise, so build your emergency account as soon as possible.
DON'T budget without reviewing. Perhaps the best way to go about budgeting is by reviewing how much you've spent the month before. This will provide you with a clear understanding of where you are, from a financial standpoint. It will also help you make changes that will, in the future, help you save even more money. By keeping this information in mind, budgeting will prove to be an even more effortless endeavor.
0 comments:
Post a Comment