Budgeting Tips for Newbies

When we have our income before us every month, we immediately think about our monthly expense. We have to pay our rent, telephone bill, electricity bill and fuel bill.

These are quite common expenses that every one has to pay.  Apart from this, if you have to pay your credit card bills for your jewelry shopping or clothes and accessories, or if you have purchased a new car, budgeting is very much necessary to take account of each and every expense that goes out of your savings account.

About Budgeting

Whether at corporate level or at personal level, budgeting has a unique identity with strong fundamental concepts of income, expenditure and savings.  At personal level, monthly budget plan is very simple and easy to prepare.

First and foremost important thing is to prepare a work sheet either in Microsoft Excel or download budgeting software program. Enter your total money receiving as earnings on one side and your expenses on the other side.  Total your earnings and total your expenses.

If your earnings are above expenses, then you are moderate in your spending. But if your expenses are above your earnings, you need to work on budgeting. With easy access to Internet, you can download financial management packages for your use and benefit.  These software programs are very effective in budgeting and would also help you to become efficient in your personal budget.

Practice Budgeting

Once you begin to practice your budgeting, you will begin to go by the guidance of the budget and this will help you in becoming a money saver. This is due to the fact that, whatever that you have mentioned in your budgeting sheet, you will practice and may not be willing to spend beyond your earnings.

For example in a span of four years time, you wish to buy a home and if you plan your budgeting in such a way that you make proportionate savings in your account that help you to buy a home, it is a goal for you and you want to achieve as you wish to have your own home. This cost and expense monitoring has to be made both at personal level and at corporate level. Because anywhere expenses send the money out of your savings account, while reduction in your expenses will increase the money figures in your bank account.

Practice budgeting for your own benefit.

Related Post