It’s no secret that the cost of living today is higher than it’s ever been, which is why budgeting has become a top priority for many families. In our current inflationary climate, it’s more important than ever to know how to stretch your income as far as possible. Most financial difficulties occur when people fail to stick to a budget, or because they lack the necessary budgeting skills in the first place.
Even if you’re bringing in a good income, it’s still important to keep track of everything that you’re spending and earning. This is something that a lot of people don’t realize – that regardless of how much money you’re making, you still need to be mindful of your finances and budget accordingly. It’s ironic but even someone who brings in a high salary can have the same money issues as someone who has a more modest income. So no matter your situation, it’s always beneficial to stay on top of your finances!
Many people have trouble budgeting, regardless of their income levels. Others who are successful in creating a budget often don’t stick to it. A budget is a fiscal plan that takes into account your incoming and outgoing money. A good budget shouldn’t just be equitable or balanced between expenses and income.
In addition to bringing in extra income, it also means lower expenses and being able to save money. For example, if you bring in $1,000 per month, you need to map out all the required expenses you would need to incur during the month, such as transportation, food and your home.
Obviously, this is presuming your tax liabilities have been settled. Once you deduct your total expenses from your income, the leftover amount is your savings. When the demand arises, how you choose to use your savings will make a difference later on.
It’s important to remember that after you settle your taxes, what’s left is your savings. When the time comes that you need to use them, how you choose to spend your savings will have an impact down the road. So make sure you consider your options carefully before making any decisions!
There are pros and cons to keeping your savings in a piggy bank versus putting it into a savings account at a bank. With a piggy bank, your cash is physically safe from you and from intruders, but the interest rate is usually minimal. If you put your savings into a bank account, the interest rate will be higher, but your cash is not as secure. With a larger savings, you will have the option to employ a financial adviser who can give you higher-yielding investment options.
Here are some suggestions to help you stay within your family budget:
1. One of the best ways to keep track of your finances is by keeping a logbook. You can use this logbook to record your income and expenses on a monthly or weekly basis. This will help you stay on top of your finances and make sure that you are not spending more than you are earning.
2. To save time and money, purchase your grocery items in bulk. Make a list of all the items you need for your chosen time period and buy them all at once. Sometimes, stores offer discounts when you purchase items in bulk, so take advantage of this!
3. It’s best to prevent yourself from having to purchase essential things by visiting the supermarket and stores. This will keep you from straying away from your financial plan and making unnecessary purchases.
4. Before you make any rash decisions, take a second to think things through – you may come to the realization that what you thought you needed is only a want!
