Managing your life starts with managing your expenses. Whereas a lot blame it on their confined income, you can take things in your hands by taking mindful steps to control every penny that comes and goes in your wallet.
Identify your budget
Budgeting means spending less than what you earn in order to gain more benefits than sheer spending on things you want, priceless benefits like paying off your debts and building up your account.
The first step is knowing the exact number you need to stick to throughout the month and design your expenses accordingly. This number can be your entire monthly income, or it after deducting essential payments like mortgage, rent… and any other payments you can’t afford failing to do.
Know where you’re putting your money
You can easily do this by grouping your daily living expenses in addition to any incidental ones on distinct categories, for example:
- Bills, mortgage, rent….
Put these expenses in the right order in terms of priority. With essential categories like food and medical you’ll surprise yourself how many things you can drop out from your shopping list without even you feeling any difference. Go back to each amount you spent in the previous month and tell for yourself if that was absolutely necessary.
After you identified your budget and necessities now comes the real work and demands your commitment and a strong well to change. It’s a simple calculation:
Budget – Expenses= Zero
This time, the zero doesn’t mean you’ve flunked something, but rather passed with honor!
Try your best to keep on this balance, improving a habit of recognizing sneaky expenses here and there. Your ambition shouldn’t be limited to living from paycheck to paycheck, but rather be saving to always be ready in case of emergencies and future plans.
If you got a minus before that number some serious changes in your lifestyle need to be done. Start trimming your expenses beginning with the luxuries, just keep on tweaking until
you realize your golden equation, and even start getting some positive numbers up there.
Take things in your hands, enjoy your money wisely today to get more to enjoy tomorrow!
For more, visit us at Teka Loan.