How do you keep track of your funds? Do you have a budget currently in place? IF so, what helps keep your budget on track? When it comes to creating a budget list, there are many things you need to keep in mind to make sure you’re not missing out on any opportunities to save. That’s why we’ve created a go-to guide for everything you should factor in when it comes to creating your personal budget.
Know Your Income
Knowing how much you regularly have coming in is the first step in creating your budget list. This sets a basis for all of your expenses and savings. For some people this is easier than others as if you are a salaried employee you know how much is coming in each paycheck. It is also common for people to make different amounts of money based on the amount of hours worked, different types of contracts, or commissioned associates; but it is being prepared financially in those situations by having a budget in place that will help you with the ins and outs of your money.
Know Your Expenses
Off the top of your head, do you know your total monthly expenses? Not to mention they can change from month to month, but it is knowing your spending habits and what bills and expenses have to be paid that people can get financially overwhelmed with. That’s why creating a list of each expense can help lay out all your costs and make it easy to see where your money is going. The best part about creating your custom budget list? You can add in, adjust or change expenses as needed. Once you have your costs organized, this leads you to the next step of your budget.
Now that you have all of your costs laid out and can see when your money is going, this is where you can take the next steps to see where you can start saving more. It is very common to feel like you don’t have enough money to save after you’ve paid all your bills and covered the other expenses for the month; but by creating a budget list and adding a savings portion helps to force you to start putting money away. This could mean finding places within your budget you start to cut back, some of the most common expenses for that are eating out and shopping. We can’t stress enough how important having some form of saving goals can be, especially in the case of an emergency, so treat it like any other expense and work out how to add saving to your budget.
Stick To Your Budget
It’s one thing to put all this effort into budgeting and creating these lists, but it’s another to actually follow through on your financial goals. By sticking to the budget list you’ve created, you’re working on creating financial stability focused around you and your lifestyle. When creating your budget it is also finding out what is the best method for you. There are many budgeting options available including mobile apps or the pen and paper method, there is a way to help keep you on track no matter what your preferences are. Work at your budget for a few months as this will allow you to work out the kinks and you will see what a difference following through on your budget can do for your bank account.
What are your tips when it comes to creating a budget list? Credit Canada has some great options if you’re looking to for ideas. Let us know your tips in the comment section below.