Budgeting and life; I know budgeting is not a popular subject with most people, but as I am one of those people, I have learned a lot through life and want to share what I have learned with those who want to learn. I see too many people working, when they should be retiring and enjoying life.
Here are 10 budgeting ideas that can help you save money and manage your finances better:
Create a budget sheet: Start by tracking your income and expenses, and make a budget that accounts for all of your expenses and income. “I add 2%-5% to my expenses to be safe.”
Cut unnecessary expenses: Look for expenses that you can reduce or eliminate. For example, you can cut back on eating out or cancel subscriptions you don’t use. “Think of what you can live without, or what you don’t use.”
Prioritize savings: Make sure to set aside money each month for savings, even if it’s just a small amount. “I know some of you can’t, but if you can do #1 & #2 above, it will help. Believe me, this step helps in times of hardships and the added % in #1 above will help with your savings.”
Use cash instead of credit: When you use cash, you can physically see how much money you’re spending, and it can help you avoid overspending. “This step also helps you have credit available when you really need it, just try to pay it off as soon as possible. Make payments of at least 3X the interest (1.5 x minimum payment).”
Use coupons and discounts: Look for coupons and discounts when shopping for groceries, clothes, and other items. “Do this even if you don’t have to, it will help when you need it.”
Cook at home: Eating out can be expensive, so try to cook at home more often. “It can be healthier and taste better too! (Save going out for date night or other special occasions).”
Set financial goals: Set realistic financial goals and work towards them. This can motivate you to save and budget better. “Think about your future, it’s closer than you think. The sooner you start, the easier it will be.”
Review your bills: Make sure you’re not overpaying for bills like utilities or insurance. Shop around for better rates if possible. ” I keep a monthly budget sheet of all my bills, check them off as I pay them, and keep a weekly running total to make sure I’m on track.”
Automate your savings: Set up automatic transfers to your savings account each month, so you don’t forget to save. “If you don’t see it, you don’t miss it.”
Be mindful of your spending: Before making a purchase, ask yourself if you really need it, and if it’s within your budget. Practicing mindfulness can help you avoid impulsive buying. “Also, think about the holding value before you buy expensive items, you may need to refinance it someday to help your financial position temporarily. It’s like money in the bank”
Bonus: I heard this from an old friend one time, 2 Things you need to work on as soon as possible, “Max out your 401K and buy a UNIQUE house.”
Conclusion: Know how much you earn, how much you need to survive, how to get more if needed and think about retirement as soon as possible (no age is too young).
