Most people do not clearly plan their budget for the month and are constantly faced with the fact that there is not enough money for vacation or some necessary thing. Maybe it's time to start doing this?
Attitude to the budget
Many people mistakenly believe that budget planning is done only by those with severe financial constraints. Nobody wants to be known as such a person in the eyes of others. This is a false stereotype that you need to get rid of as soon as possible. This attitude towards their own money leads to the fact that they will always be in short supply.
The average person spends a fifth of his income on things he doesn't need. Wouldn't it be better to abandon them and use this money for new beautiful clothes or put it off for vacation? It's all about prioritization. This is the first step towards financial freedom.
Cost accounting
Accounting for expenses is boring and routine work, but it needs to be done. You should not go to extremes and count how many potatoes you ate in a month, otherwise you will soon get tired of keeping records and you will return to your old life. Everything is good in moderation. Just create a table in Excel where you will record your main income and expenses. You need to do this regularly.
Payday
You just received your paycheck. What will you do first? If you are determined to plan your budget, it is worth setting aside a certain amount right away. This will be your personal capital, which will not only help you in an emergency, but also increase your budget for the next month. Some people save money at the end of the month, but this method is too unreliable. They may simply not stay.
Reduction of large expenses
It makes sense to pay attention to high costs and cut them as much as possible. Only they significantly affect the budget, while small ones almost do not matter. You can't save a lot on refusing to eat, and because of this, stomach problems will certainly appear. As a result, you will spend more money on a doctor.
50, 30 and 20
Bestselling budget planners recommend spending 50% of your income on essential items: groceries, transportation, utilities, and more. 30% should be directed to satisfy their desires, buy fashionable clothes, jewelry, electronics. You need to put 20% of your salary into your own savings. This simple technique allows you to live your life as you please, without making a lot of effort.
There are many ways to plan your budget today. You need to find the one that is right for you. Do not demand immediate results from yourself and allow yourself to get frustrated sometimes. There is nothing special about this, it is rather difficult for a person to acquire good habits. To be more effective, ask your family for help.
