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Monday, July 11, 2011

Budgeting Tips

Financial Goals

  • Set out what you hope to achieve before planning your budget.  Do you want to reduce your debt, save for something special?
  • Set your goals with time frames for example, six months, a year, five years, etc.

Create Your Budget
  • Work out how you are going to have your budget – will you use a book, a folder or a spreadsheet?
  • A good way to start is to begin with 12 columns, one for each month.
  • Your row’s will be used for expenses
  • Divide your income and expenses into categories.
Track Your Expenses
  • List your static expenses (expenses that cost the same each month) for example, rent, mortgage, car repayments, etc
  • List your variable expenses (expenses that differ from month to month), for example, groceries, utilities, etc
  • Don’t forget to go through your last twelve months of bills for any unexpected expenses to account for such as medical bills, fines, etc.
  • Go through your bills and see where you can cut down
Budgeting Tips
  • Try to avoid impulse spending.  If you see something that you really want – go away and think about it and check to see that you can afford it first.  It’s all about control
  • Be financially organised and pay attention to exactly where your money goes
  • Try to stick to your planned budget as best you can
  •  Don’t deprive yourself completely

Debt Tips
  • List all of the debt that you currently owe and also make a note of the interest rate charged to each.
  • Pay as much as you can on the  highest interest rate
  • Try to put at least 10% of your income into your savings

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