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 keep yourself covered for worst-case scenarios. As you budget, you should set money aside to be placed in an emergency account. This can be used for any situation that unexpectedly occurs, like a broken bone or any health complication you may think of. An emergency account can help you cover the costs without you having to pay out of pocket. You may find yourself overspending otherwise, so build your emergency account as soon as possible.
DON'T create a budget unless you plan on reviewing it. As a matter of fact, this is one of the most important aspects of budgeting, no matter how much you make. Once you've recorded your spendings for the month, go back and review them. Have you been staying within your limits? Are there areas to be improved upon? By asking yourself these questions during the review process, budgeting will become that much easier.
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 keep yourself covered for worst-case scenarios. As you budget, you should set money aside to be placed in an emergency account. This can be used for any situation that unexpectedly occurs, like a broken bone or any health complication you may think of. An emergency account can help you cover the costs without you having to pay out of pocket. You may find yourself overspending otherwise, so build your emergency account as soon as possible.
DON'T create a budget unless you plan on reviewing it. As a matter of fact, this is one of the most important aspects of budgeting, no matter how much you make. Once you've recorded your spendings for the month, go back and review them. Have you been staying within your limits? Are there areas to be improved upon? By asking yourself these questions during the review process, budgeting will become that much easier.
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