Sunday, June 2, 2013

Budgeting Made Easy

Pay day is one of the happiest and saddest day of my life. Happy, because I get a hold of my hard earned cash. Saddest, because I have to budget all of my expenses and once that is over I'm only left with what looks like 1/4 of my salary. If you're like me who loves the good and nice things in life but still needs to budget their money since we're not all rich kids, here are some tips that might be helpful.

I'm not saying I'm an expert when it comes to budgeting. When I had my first job, I never really budget my salary. And my best friend that time were 2 plastic cards named Citibank and HSBC. Then I got stuck with this huge debt after I left my first job with no replacement. Think of Shopaholic the movie, it was like that! Thankfully, I had my parents to save my sorry ass and pay my debt for me and I didn't have to sell all of my clothes! Haha! So, I said to myself, as soon as I get another job I'll do my equal share of expenses at home.The first thing I did to get out of that debt hole is cancel my credit card to avoid temptations.

Budgeting is not easy especially when you're a beginner. There were times that I never really stick to it. But through the years, I realized I had to be strict with myself because this is what adults do! I can now say that I have a hang of budgeting my money. Especially now that I am the only person working in the family which makes me the breadwinner. 

Here are some tips I learned from The Lazy Girl's Guide to Success by Anikta Naik

1. Write down everything you spend. 
-There's an app for that now so don't make excuses!
2. Spend less than you earn. 
-This means cutting back on your debts. It's been more than 5 years since I became a cash person and letting go of those plastic cards was hard at first but in the long run, it was such a relief!
3. Think before you spend.
-Ask yourself, "do I really need this?". And if you really do, practice canvassing.
4. Think about why you spend. 
-Are you just bored, sad or the music in the shopping mall made you excited that you went on a shopping spree? 

It is important to create a weekly and monthly budget and stick to it! Gather together your wage slip, your bills, your bank statements and credit card and store card payments, grab a calculator and start writing:

Income per month: _______

Outgoing per month (essentials):
Insurance (if applicable)
Service charge (if applicable)
Council/local tax:
Travel Costs
Credit card/store card payments
Loan payments
Miscellaneous (other money owed)
Food (not socializing)
Home supplies (essential products)

The money that is left is now that amount to budget with; that is, the money that you have to live for the month. This is the amount that you have for all your non essentials such as socializing and spending.
Check out the book! It's a very easy read and I learned a lot from it! The Lazy Girl's Guide to Success by Anita Naik

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