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 make use of spreadsheets. In the digital age we live in, recording your data in notebooks is a thing of the past. Instead, you should go on your computer so that you can track your expenses with spreadsheets. Not only will these keep your data organized, but you'll be able to pull them up from anywhere courtesy of the cloud. This is just one of many budgeting tips that names like Bobby Jain can offer.
DON'T immediately gravitate toward wants instead of needs. One of the biggest challenges of budgeting is deciding what's a need and what's a want. Office supplies like computers and notebook are often seen as needs. Luxuries like new cars and restaurant trips are regarded as wants. While it probably goes without saying, needs should be prioritized. By doing so, you will be able to save more money in the long term.
DO account for emergencies that may arise. These include, but aren't limited to, broken bones, job loss, and automotive costs. Before these arise, it's in your best interest to create an emergency account. What this will do is allow you to slowly save money over the course of time. Before you know it, you'll have a sizable account that will only be used in these types of emergencies. Having a separate account goes a long way from a budgeting standpoint.
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 make use of spreadsheets. In the digital age we live in, recording your data in notebooks is a thing of the past. Instead, you should go on your computer so that you can track your expenses with spreadsheets. Not only will these keep your data organized, but you'll be able to pull them up from anywhere courtesy of the cloud. This is just one of many budgeting tips that names like Bobby Jain can offer.
DON'T immediately gravitate toward wants instead of needs. One of the biggest challenges of budgeting is deciding what's a need and what's a want. Office supplies like computers and notebook are often seen as needs. Luxuries like new cars and restaurant trips are regarded as wants. While it probably goes without saying, needs should be prioritized. By doing so, you will be able to save more money in the long term.
DO account for emergencies that may arise. These include, but aren't limited to, broken bones, job loss, and automotive costs. Before these arise, it's in your best interest to create an emergency account. What this will do is allow you to slowly save money over the course of time. Before you know it, you'll have a sizable account that will only be used in these types of emergencies. Having a separate account goes a long way from a budgeting standpoint.
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.
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