10 Smart Budget Planning Tips to help you get to the stage of finally moving into your new home.
Do you have big expense coming up? Perhaps you need a better car, you want to study, or you want to move into your own home? Creating a budget will show you exactly how much money you have coming in, and how much is going out. If you don’t have a budget plan, you probably don’t have the best picture of your finances and you may be tempted to borrow money rather than squeeze all you can from your income.
That’s why it’s better in the long run to have a budget. Careful budgeting can improve a financial situation, which means less stress.
Read on to see what 10 smart budget planning tips you should incorporate into your budget-plan strategy to reach your goal of making that major purchase.
1. Focus on Savings
Determine the amount of your budget you can afford to save each month and have it direct-deposited into your savings account.
2. Use Cash
Take out enough cash to last one week at a time.
3. Cut Bad Habits
Bad habits are expensive and not healthy. Stop smoking and excessive drinking. You’ll also save on health care expenses down the road and you may be eligible for lower insurance premiums.
4. Share the Responsibility
Sit down with your partner to make a plan together, as sharing responsibility makes a big difference so you don’t have to shoulder the entire burden alone.
5. Pay Down Debt
Choose one card with the highest interest rate and pay as much as you can on it every month. If you have other cards, pay the minimum balance on those until you have paid off that first card. If you only pay the minimum on all your cards, you’ll be paying a lot more in interest then you may realize.
6. Keep your Receipts
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Keeping track can help you stick to your budget, save your recipes and write down the places you spend most your money.
7. Check your Balance Regularly
Do you check your account balance regularly? If not, get into that habit, if you balance up every time you get a bank statement you can make sure you don’t overdraw.
8. Analyze your Spending
When analyzing your spending’s, find an expense that can be cut.
9. Special Accounts
If you can’t trust yourself and need discipline, set up another account with early withdrawal penalties.
10. Be Flexible
Life is unpredictable. When you make the budget, allow some extra money for variable expenses. Be gentle with yourself if you do go over budget sometimes, practice makes perfect.
Hat Tip: How Stuff Works