Learn Where Your Money Goes By Budgeting
Does it seem like money just evaporates as soon as you get it? On Monday you stuck a couple of twenties in your wallet and by Thursday all you have is some loose change. For a lot of folks, if you have it, you will spend it. Cash seems to slip out of your hands, whether it is spent on a Cappuccino or a magazine at the news stand.
With a few budgeting basics, however, you can be educated to track all of your spending and make sure your money goes only where you intend, and not on needless luxuries. A solid understanding of budgeting basics allows you to determine where your money needs to be directed and where cuts should be made. Creating a budget is not that difficult; but it does require a little time and organization. It is fairly simple to grasp the basics of budgeting.
To create a budget, you must first have some records of your expenses. You should collect together your financial records, including your checkbook records, store receipts and credit card statements which track where your money is being spent. Ideally, you should try to get an idea of how much you have spent in numerous different categories over the last six months. robust budgeting calls for a chart consisting of categories that detail your spending habits. Transportation, medical bills, food, entertainment, school and housing are just a few of the categories.
Look as far back into your financial records as possible, in order to get a more accurate picture of your spending habits and budgeting needs. You will be astonished at the amount of money you spend on luxuries. If you are inclined to drop five dollars here and three dollars there without thinking, it is a revelation to see how much money slips away over a short period of time.
Budgeting basics, once realized, are skills you should use all your life, because your budget is in constant flux. If you stick to it, you will not have to wonder where all your money goes.
With a few budgeting basics, however, you can be educated to track all of your spending and make sure your money goes only where you intend, and not on needless luxuries. A solid understanding of budgeting basics allows you to determine where your money needs to be directed and where cuts should be made. Creating a budget is not that difficult; but it does require a little time and organization. It is fairly simple to grasp the basics of budgeting.
To create a budget, you must first have some records of your expenses. You should collect together your financial records, including your checkbook records, store receipts and credit card statements which track where your money is being spent. Ideally, you should try to get an idea of how much you have spent in numerous different categories over the last six months. robust budgeting calls for a chart consisting of categories that detail your spending habits. Transportation, medical bills, food, entertainment, school and housing are just a few of the categories.
Look as far back into your financial records as possible, in order to get a more accurate picture of your spending habits and budgeting needs. You will be astonished at the amount of money you spend on luxuries. If you are inclined to drop five dollars here and three dollars there without thinking, it is a revelation to see how much money slips away over a short period of time.
Budgeting basics, once realized, are skills you should use all your life, because your budget is in constant flux. If you stick to it, you will not have to wonder where all your money goes.
About the Author:
Steve Collins is a writer and journalist. In these trying times, he knows the importance of obtaining effective Credit Card Debt Settlement if necessary. Read his article about Credit Card Debt Settlement here.
posted by Credit Counseling at
3:27 AM
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