To plan the budget, you need to carefully and honestly examine your financial situation without being horrified. Maybe the idea of budgeting is so painful because it causes thoughts about savings, trembling over every penny and utterly refusing pleasures for the sake of financial survival. “Excellent,” you think, “what’s next?” Dilute the dishwashing liquid with water and eat cabbage soup and stale bread “?
A popular budget management strategy is the worksheets of tables where you can distribute your salary between various necessary expenses (apartment, car payments, food, clothes) and not so necessary (entertainment, restaurants and “other”) expenses. Life is rarely so simple as it looks in the table, but at least you will be able to assess your possibilities realistically, although sticking to the decision may not be easy and will understand what the state of things is and what troubles you might face.
How many salaries do you need?
How much money you earn, one question puts everyone on an equal footing: how much does the salary separates you from poverty? Ideally, the answer should be more than 0 or 1. It does not matter how much money people get, the way of life always starts catching up with income, so it’s not easy to raise the number of salaries. But the higher your score, the calmer you feel. A sensible girl will be put off money for three months of expenses – in case of dismissal, care, flood or intervention of the Lord.
Quick budgeting guide
1. Within a month, keep a diary of expenses.
2. Divide costs into mandatory and optional.
3. Subtract the costs from the monthly income and see how much you need to cut spending.
4. Cut the optional part so that the lifestyle corresponds to your salary.
5. Make a budget that will suit you and your income.
6. Refine the budget, keeping track of expenditures and comparing them with the anticipated budget.
7. Congratulate yourself. Budgeting is one of the most unpleasant things on earth. You did it. You do not have to worry about that anymore.