Sometimes even the richest people face one problem. They cannot afford something because they don’t keep their budget. But sometimes you desperately need money. And this isn’t only about emergencies. It’s also about some funny staff, such as a Netflix subscription or gambling in the Casino PlayAmo. These tips will help you always have the sum you need.
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Keep Track of Your Expenses
Create an Excel spreadsheet or download the app on your smartphone, take an online budgeting class, write down expenses and stay on your budget. You need to know exactly what your income is and what your expenses are. And make sure your expenses are always less than your income.
Split up Expenses According to Areas
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Separate funds by different spheres. For example, you have expenses for food, entertainment, clothes, rent, house, babysitter, and daycare. Spread the money out based on your past month’s spending. Let’s say you allocate 10% of your income to charity, 10% to help your parents, and 10% to education, courses, gym, and books. For example, this month you set aside $800 for education and didn’t spend anything. The next month you also set aside $ 800. Here you have $1,600. You can buy some steeper course or save up for something more.
It is important not to spend money from one area on another. That is, if you set aside money for training, you don’t spend it on jeans.
Set Aside Money for Unexpected Spendings
Set aside 5-10% of your income for spontaneous purchases. If something happens, you’ll have money to deal with unexpected issues.
If you tend to make spontaneous purchases, you should first ask yourself, “What am I replacing for myself with this purchase?” Maybe it’s a source of emotion or pleasure. Just think about it. And make a separate line item in your wallet, bank account, or credit card for spontaneous purchases. Let there be an amount, within which you will buy something. The amount is over, and the spontaneous shopping is over.
And what if your relatives do not support this method? This is where it’s important to set an example. Try to save for 4-5 months, and then buy something useful: for example, a vacuum cleaner or a refrigerator. So, you’ll show that it was thanks to this method, you have a new thing in the house. And then your other half may think hard.