Eight Steps Make Bylaws
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| finance |
Set outflow of your hard earned money is not always difficult, also do not have to sacrifice style. If you use a budget correctly, you will know how much money has been in and out, as well as be used for anything. Even
better, you'll know that you have money in hand for a major purchase
like a car, a house down payment, or expand your family. Here's how to make it happen in eight easy steps.
Record your expenses for one month
First, write down your expenses for a month. The only goal for this month is to record every dollar you spend. At this stage, you are just gathering information, so do not stress first. Every time you spend money, write down the amount and for what purpose.
Calculate monthly or annual income
Collect your paycheck. Now it's time to figure out the income year. If you have the same job and same salary as last year, you can use last year's income for this step. If you have changed jobs or have a source of additional income, calculate your approximate salary every month, then multiply 12.
To categorize your monthly fee
Take time to analyze your expenses from the last few weeks. Categorize
your purchases into categories such as groceries, toiletries, spending
money, or rent, and any other groups that naturally arise. If you need ideas for how to categorize your expenses, look online for a budget form that you can print.
Evaluate and plan
Calculate your expenses in each category for the previous month. If they exceed your income, do not panic. It is time for us to plan how we are going to make a balance.Notice your expenses from last month. If
you spend 500 thousand a month to rent DVDs and cable TV, but do not
have the money for the future, you can save by quitting cable TV
subscription? Can you save more in the post of entertainment? Apply
that logic to every budget item, subtract the amount you spend each
month, making it smaller than the amount of your income.
Be careful with expenditures not to exceed budget
Now that you have a budget on paper, it's time to implement them in real life. There
are some websites or apps that track your categories for each purchase,
and send email or SMS alerts if you've nearly exceeded the amount
budgeted. Record your expenses carefully is an important part of the budget, regardless of whether you use software or a pencil and paper.
Savings is the main
Each time you receive a paycheck, set a small amount into a savings account. If
it is difficult for you to pull money out of your account, consider
setting up regular transfer or direct deposit into savings, so the
process is not clear to you. Saving for your future is important, even if you just set aside a little each week.
Paying the debt is a priority
Once you have controlled spending and less saving, dedicate some of your money each month to pay off the debt. Even an additional 200 thousand for the credit card bill will feel the difference.
Leave some money in your account
If you have a problem with overspending in the past, it may be wise to set aside $ 1 million s / d R1, 5 million. Leave the money is in your account, but subtract from the book. It allows you to overcome a small difference if you make a mistake or if the mathematics are no hidden costs.
Divide larger loads throughout the year
If
you have a large expense in a year or twice a year, such as car
insurance premium or claim vacation, take the time to present their
budget. Christmas
comes at the same time every year, and your car insurance is always
going to mature, so it's time to stop letting big bills bring surprises.In contrast, the total amount you spend by 12 and a portion of this money every month. When you design a budget and start actually making money work for you, you are already on the road to financial freedom.