Budgeting is one the most important decisions you will make when it comes to having a financially healthy lifestyle. Very much like the roadmap before venturing on an important journey. Or the compass you need before setting sail, in search of your dream destination, to keep you on the right path. Here are the fundamental know-hows that will get you started in the right direction!
- Before you start, make sure you list and total the income of your family. It is important to plan this ahead of every paycheck.
- Make a list of essential expenses – food, housing, medical needs, utilities, education, transportation, financial payments and obligations, etc. This does not include dining out, entertainment, day trips, and the like!
- Make sure you set aside a little every month for any emergency. Always wise to be prepared for a rainy day. Giving the kitchen a new look, or upgrading old fixtures are not a reason to dip into the piggy bank!
- If there is still room in your budget, make sure that money is tucked away in a savings account – however small it may seem. It is not the amount, but the habit of saving that matters more.
- Give yourself the gift of five minutes everyday to track your expenses. It will help you see where your money is going, so you are not caught off-guard when the credit card bill arrives. Resist the urge to spend beyond what you planned for the month.
Utilities and groceries are key areas to tweak expenses, when possible, while maintaining a healthy lifestyle. Many stores rotate food supplies that they have on sale, and it would be ideal to make use of this. When possible, stack up on discounted items, while looking for the best deals.
Check with your bank for the option of setting up an automatic transfer every month. Making savings a non-negotiable will bless you in the long run. Remember, money not spent, is money saved. It will come handy when there are celebrations and holidays!
Being intentional about your spending, helps you stay in charge of your money. Staying persistent and being accountable when it is not easy, is what will take you to the next level.
It is not too late to get back on track on the road to your financial dreams. If you need help crafting a personalized budget that works for you, speak to one of our caring, accredited, not-for-profit counsellors today, or leave us a message here. When you need help, we are here for you!