Budget management. We’ll tackle more on the details of how you can do it. Earlier, we told you about the relationship that exists between budget and time. Today, let’s talk about how you can budget your money, and that way be productive even in your income and your expenditures.
Budget Management: Be Efficient In Handling Income
There seems to be a cycle here. Everyone has this elaborate and luxurious plan about how they’ll set aside this much of what they earn and allot it to savings. You get all excited about the prospect of finally having a feasible plan of having some green in your desolate bank account. This isn’t a pun. I’ve been there and I’m very much talking to myself, too.
However, somewhere along the way, you lose track of that grand plan and find yourself living from paycheck to paycheck, savings, nada. There’s nothing wrong with living from paycheck to paycheck.
It’s a reality of life. We earn. We spend. Earn, then spend. That’s the circle of… I am NOT going to reference the Lion King again. I’ve referenced it too much in the past, you might hate me for it already.
What Experts Say About Income Amount And Savings
Experts on money and on budgeting have all said the same thing. No matter the amount of what you earn, there’s always room for savings. Whether we’re the employee, the employer, the manager, the CEO or the short-termer, budgeting knows no minimum amount.
Here then are some very applicable and practical steps to take to make sure that this time, you’ll finally be able to get your budgeting train on the go. No stopovers.
The Fantastic 4 Of Budgeting Tips (The Reboot, Not The First Movie)
First, know how much you earn. This might sound silly to you, but there are many out there who only have a bird’s eye view of their income. “My income is about $$$ per month, I think.” What we mean here is know how you’re rated. Hourly? How much to the cent? How many hours do you usually work in a week?
And more questions. How often do you get incentives? What’s the average you receive? What about benefits? Other company-required deductions? What’s your tax bracket or percentage? How much is that if converted into your currency?
Next, let’s move on to your utilities. Electricity, rent, water. Then, you’ve got other spendings that are “musts”. Groceries and food, tuition fee (for those with kiddos), tuition fees for those of you who are into passion-hobby classes. If you think your list is complete, add them all up.
This amount is what you immediately deduct from your salary. Now check the remainder. In all honesty, like, really be honest to yourself here. Don’t be selfish. How much of this can you put in the bank? If you’d be able to tighten the belt, how much?
Budget Management: Cutting Yourself Some Slack Once In A While
Remember, you can give room for tiny luxuries such as money for going out with friends, going to the movies with the fam and having dinner out with them.
Tiny luxuries you don’t really need? For now, let’s put a stop to them. Just until you can get the hang of budgeting. Maybe even then, you yourself will see that there are so many other things you used to spend on that you can live without.