Budgeting Tips
Living in a monetary society means not only having a source of income, but knowing how to spend it wisely. It doesn't matter if it's for a birthday party or a new city, we're going to need a plan for our moneys' use. That's where budgeting comes into play. A budget is a way to organize how much money you will/plan to spend on a certain thing(s). Here are a few tips on effective planning of the use of your hard-earned money:
- Know what your limits are. You know how much money you have, find prices that fit comfortably in your range.
- Sort your items into 3 categories: fixed costs, variable costs, and miscellaneous. Fixed costs are things you're going to need for sure, every time. Variable costs are just that- variable. They may fluctuate depending on the circumstances. Miscellaneous costs are your safety net. Set aside part of your money in case you go over your limit.
- Keep your budget history organized. Computers are a good way to go, you can pull up files from months ago. It's also less work on your hands from writing. Microsoft Excel is a low-cost way to keep organized.
- Check and re-check your numbers. We're all human, a number error could be the difference between being in the "red" or in the "black".
- Get estimates. Don't be afraid to call up companies and request information from them. Just make sure you know what you're looking for beforehand.
- Ask for help! If you have a mother, father, sister, uncle who does taxes (I'm sure you do) ask them questions if you don't understand something. Experienced "budgeters" are a surefire way to get the assistance you need.