May 21, 2021 • 5 min read
At times, it’s easy to go overboard on spending. You let your wallet take control of you on a night out, you accidentally buy too many toys for your new puppy, you decide your new apartment NEEDS the latest flat-screen TV, you lose a bet on your favorite basketball team… it happens. Continue reading to learn how to plan your budget and take control of your personal finances with just the right mindset and a few simple steps to follow.
Where do you even start? First, it is important to understand why having limits is beneficial for your pocket. Having a budget does not necessarily mean you can’t buy the things you love, nor does it mean you can’t splurge on yourself once in a while. Instead, having a budget means being financially responsible, along with keeping some sort of structure for your money. Budgeting includes setting goals for yourself and achieving them on a weekly or even monthly basis. Get a good understanding of what you value the most in life, and why you want to save money in the first place. Then, go ahead and base your budget on that.
Once you’ve understood the importance of a budget and you begin to monitor the way you spend, you’ll gain some sort of clarity (hopefully). This will make it simpler to cut out unnecessary expenses, and allow you to focus on what really matters. A report of your expenses will allow you to see just how quickly the bucks start adding up. Ultimately, you’ll be able to sort out the essential needs. Getting in the habit of this is important and undoubtedly worthwhile.
A good piece of advice is to expect the unexpected. You accidentally parked somewhere you weren’t supposed to and now you’ve incurred the cost of a towing fee or a parking ticket. We recommend for you set aside some extra bucks from your budget for expenses that may catch you by surprise. In addition to this, we encourage you to categorize your spending and set limits to each category. By doing so, you’ll have a clear idea of how much you’re willing to spend on each of these categories such as food and drink, entertainment, transportation, housing, etc. Once you have that all mapped out, you’ll be able to see what you’ve got leftover for those unforeseen charges.
Although budgeting entails saving money, we’re encouraging you to find ways to make money. According to Entrepreneurship in a Box, “a typical millionaire has seven different sources of income.” Some ways to do this include getting a second job, learning how to invest as a beginner, starting your side gig/business, or even purchasing assets with a passive income. (5 Financial Tips for Young Adults). Believe us, your budget will thank you later if you’re able to manage to find new sources of income. It may be more money to categorize, but less stress for you!
Finance can be scary, but it’s not hard. We hope these easy-to-follow steps gave you a new perspective on planning your budget. You don’t have to do it alone, there are resources that can help you. We are here to do just that. Organize your finances, set goals for yourself, and start balancing your bucks today for a better tomorrow. At BucksApp we get it, and we got you.