So many people struggle with sticking to a budget and managing their spending because they start with a month-to-month salary survival approach.
It’s far more effective to start with a purpose that’s unique to your life goals and priorities:
• What are my goals?
• What will your money allow you to do in the next year, five years, or 20 years from now.
A budget is simply a spending plan that monitors both current and future income and expenses. Taking the time to manage your money better will pay off in the short and long term. It helps you to stay on top of your bills and save money each year. You can use extra savings to pay off any debts you might have or put them towards your future plans.
Using a budget will help you plan where your money should be going. It is important to track where your money is being spent and how frequently to help give you a clearer picture of your outgoing expenditure. By keeping track of your spending for a couple of weeks, it will show you where your money is going. You might be surprised by what you’re buying and what you can do without. The advantage of budgeting also helps you to figure out your long term goals and work toward them. While contactless ‘tap and go’ card payments provide for a convenient, cash free transactional shopping, it is also easier to lose track of what you are spending. By maintaining a budget, it will provide an overview of your spending habits and could help you rethink those spur of the moment purchases.
Please click on link for a useful budgeting tool