Money is a sensitive subject. It’s not always that easy to talk about or to work with. Either way, we all need to learn how to budget properly at some point or another in life. Regardless of how much money you earn, we all have outgoings; some bigger than others. So, it’s important to be able to workout exactly what money you make, and how much you spend, to make sure that you’re on track.
If you’ve never been that great at tracking your money, now’s the time to make a change. As we get further into the year, you might want to start saving for a vacation, or for another kind of large investment. But to do that, it would be useful to get a good grip on your finances.
Know What You Have
The first thing you’re going to need to do is to work out what money you have. You might think you know how much you earn, but it’s not always that obvious. So, instead of guessing the amount that you get each month, you need to start tracking it. Once you know exactly what money comes into your household each month (combine yours and your husband’s salaries and extras), you can start to work on budgeting correctly.
Have A System
Next, you need to have a good system in place for budgeting. You might choose to use an online program, or, if you’re not sure that they cover off your needs, you could create one yourself. If you’re proficient with spreadsheets (or, if not, you can get Excel Training by Training Connection), then you can create a logging system, and charts, that will help you to create a monthly budget.
See What You Spend
Now that you have a system in place, you can start to track what you spend. You might be tempted to set yourself a budget right away, but unless you know where your money goes, it might be unrealistic to do that first. You need to know what outgoings you have, and how much they cost per month. That way, you can work on reducing certain expenses, and make sure others are covered.
Allocate A Budget
As you start to see where your money is going, you can work on budgeting your expenditure. You’re going to want to work on the most important areas first, like your rent and bills, because these are areas that can rarely change. Then, you can look at things like your car payments, phone bill, grocery bills and so on. The latter are often areas that you can get better deals on, and save you money.
Adjust And Readjust
The first month that you work on a budget can be tricky. But, the idea is to keep working at it. Sometimes, you may need to rejig the amounts you have, switching them between areas, in order to get it right. And that’s okay because the important part is that you’re tracking your money and you finally know where all of it goes.