A few weeks ago I wrote about life changing subjects to consider incorporating into ourselves this year in the blog post It is a New Year. The fourth key action step is developing an achievable budget and to be successful in managing your money.
There are all kinds of budget planning systems out there. Making it simple is the key. Some people like budget daily planners, some like spreadsheets to keep track of spending, others like APPS on cell phones.
Let’s make it simple:
Get a pen and small notebook to track daily spending habits it is really easy to track spending. Everytime you want to purchase something pull out your spending notebook.
Set daily, weekly and monthly goals of how much free money you have to spend.
How much money per month do you make (Income)?
How much per month goes towards bills (Expenses)? Add up all your bills for the month. example: (Mortgage, Rent, Utilities, Credit Cards etc.)
How much money do you need per month for food, groceries and travel to and from work? Add up and review what you spent last month. Is there something you can change in your spending habits to save money? Do you go out for lunch and dinner everyday? Do you make your breakfast, lunch and dinner at home?
How much did you spend for other expenses? Add them all up from last month. Review your spending habits from last month. Is there something you are spending your money on that you really don’t need?
How much money do you want to put towards savings?
How much do you have left? Take your total income and minus your total expenses and savings amount.
Do you have any money left?
Example:
Income (Total pay for the month) $2,500.00
Expenses (Total bills per month) – $1,500.00
Total spending per month on groceries, gas in car etc. – $ 300.00
Total to put towards savings account each month -$ 250.00
Total amount left + 450.00
$450.00 divided by 31 days = $14.51 per day in spending to make monthly money goal.
If yes, how much?
If no, review what you are spending your money on and what can be cut out.
Once you have your figure. Each day write down everything you are spending. At the end of the day review what you spent. Did you stay at your target amount?
Every time you pull out that notebook and write something down think about it before you spend it. Is this really helping me achieve my money goals. Do I really need this $4.00 cappuccino and coffee today? If I buy that $4.00 coffee I will have $10.52 left for the day.
Knowing how much you have to spend in a day will help you stay within budget. By writing down everything you spend makes it easy for better decisions with your money.
My challenge for you is to take last month figures and start incorporating your daily budget number into your daily spending habits this year. If you have not been saving any money this may help you achieve it. ~ Patti
com – TM
