Many people do not like to make their personal budget planning.
They are so frustrated of becoming penniless before the end of the month. They do not realize that it is not difficult to reach their financial freedom using personal budget as a tool.
It is recommended to take time to make review of their expenditures journal. Softwares can be used to assist them to see how their money was spent.
It is strongly suggested to take a budget course. There are a lot of free budget courses in the internet as well as in the neighborhood.
Spend a little time reviewing and managing personal budget, this will be a step towards financial freedom.
People need to understand that small expenditures such as parking tickets or a cup of coffee will influence their personal finance. Do they ever multiply that small expense by 30 days or by a year period? They can see how much it will be.
It is important to have a clear review on the average monthly expenditure. They can sum the total of 3 to 6 months expenditures (fixed costs such as rent, mortgage, insurance, and variable costs such as medical bills, groceries, credit card expenses), then divide it by the total period of time.
By knowing the average monthly expenditure, they can realize whether they are overspend. Are their monthly spending higher than their monthly income?
It is sometimes necessary to get help from a counselor if they are in the edge of debt and cannot protect themselves. It is better to spend on counseling fee than to have a never ending problem on debts.
For making a budget they will need to:
They are so frustrated of becoming penniless before the end of the month. They do not realize that it is not difficult to reach their financial freedom using personal budget as a tool.
It is recommended to take time to make review of their expenditures journal. Softwares can be used to assist them to see how their money was spent.
It is strongly suggested to take a budget course. There are a lot of free budget courses in the internet as well as in the neighborhood.
Spend a little time reviewing and managing personal budget, this will be a step towards financial freedom.
People need to understand that small expenditures such as parking tickets or a cup of coffee will influence their personal finance. Do they ever multiply that small expense by 30 days or by a year period? They can see how much it will be.
It is important to have a clear review on the average monthly expenditure. They can sum the total of 3 to 6 months expenditures (fixed costs such as rent, mortgage, insurance, and variable costs such as medical bills, groceries, credit card expenses), then divide it by the total period of time.
By knowing the average monthly expenditure, they can realize whether they are overspend. Are their monthly spending higher than their monthly income?
It is sometimes necessary to get help from a counselor if they are in the edge of debt and cannot protect themselves. It is better to spend on counseling fee than to have a never ending problem on debts.
For making a budget they will need to:
- Realize their financial position
- Sacrifice some luxuries, such as taking a cup of tea from café while they can make it themselves at home. Cut some of their weekly magazine, bring lunch from home instead of take out.
- Look for substitutes of luxurious items. There are a lot of good quality items within their budgets.
- Deposit regularly on their savings accounts.
- Promise themselves that they will stick to their budgets and keep themselves away from any debts.
But do not get depressed when something unexpected happens. Sometimes they have no choice but breaking their personal budgets. Health problems, home maintenance, wedding gifts can mess up their plan. What they need to do is being flexible and restructure their plan.
