Wednesday, April 2, 2014

Change The Way You Budget Your Money

I already shared a way to save money by only buying what you need, and not spending money on things that are unimportant. That is a great way to have more money in the future, but I will share another way you can boost your budget.

Many people budget their money out into what they have to pay for each month or what they want to get. For example someone may make $1200 a month which would equal out to around $300 a week. They would have $500 going to rent, $400 going to groceries, and maybe the rest going to utilities. Whatever they have left over is probably blown in one way or another.

Living on a strict budget can get you in a lot of trouble because if for any reason your wages or hours are cut back, you are out of money. I have seen many people come in with money issues, and they all say the same thing. "I had exactly the amount of money I needed and when my hours were cut, I got behind on all my bills".

The best way to take care of your money is know exactly how much money you need for certain tasks. Pay your bills up front, and always make sure to put a little bit of money back. This is going to allow you to save money in case you do have a hour or wage cut at work. You can still buy some things that you want each month, but make sure that every month you have something to take with you in the future.

Another good idea is to set up a few emergency funds, such as a three month emergency fund, or a six month fund. In a rocky economy such as the one we have in 2014, you never know what could happen to your job. Some of the careers that were thought to always be in demand are seeing job opportunities dropping like flies. Don't lie to yourself and say that you could never lose your job, because I have had many friends and family members that were laid off from their jobs in the last two years.

Be smart and don't budget your money down to the penny every month. Use what you need and always take a little with you to the next month in case of emergency.

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