With this fresh new decade, two things right. It’s cold this year and people will make a new year resolution. The problem is that most will not see their resolution. One of the biggest people does is to get their finances in sequence. With such an economy and people struggle to keep or find work, financial stability is more important now than that has been in most of our lives.
The key step towards financial stability has a budget that can be applied. I think that having one is the main foundation to improve your monetary sanity. Often people will advance from themselves and try to hit Home Run investment. I know I’ve tried it. This is part of our modern culture to get what we want when we want it. And we want it now. The problem with it, when it comes to personal finance, is that if we have spent years of irresponsible, it takes time to correct past mistakes. It won’t happen at night. But it can happen. And starting the budget will get the ball rolling.
When starting a budget, you can be overwhelmed. There are lots of tricks out there. There are many formulas. The truth is, it’s quite simple. So here I will issue some general tips. If you follow these tips, you can build a functioning budget.
First, you need to identify your bill. Just sit and discuss your bill. Each recurring cost. When doing this, you might be able to identify areas where you can make or two. But don’t get too trapped in that. Just worry about finding what you have.
Next, and this can be a little harder, find out your weekly living costs. This is food, lunch, gas, and that kind of things. Don’t worry right when starting. Get an overview. Then identify your additional costs. This will be a type of entertainment. Think of it more like what you want instead of needs.
After you have all this placed, you can start a simple budget. Start with your monthly home salary. Then down to the level of importance. Start with savings. I know I didn’t mention it before because I assumed you didn’t have it and hadn’t made it a priority. Most yet. But you have to. Start small, like ten dollars a month. Then remove your bill. Then the cost of your life. And finally your entertainment.
After you put this, you have a budget. Try complete with the best you can. Don’t worry about knocking down all your debt immediately. You want to feel comfortable working with a budget before starting to tweak too much. When you do it, always do it in small quantities. Setting a small stepping goal will help you stay motivated to move forward.