While some of us find budgeting a walk in the park, the majority of people often end up spending too much at some point or another, and the consequences can range from mildly embarrassing to overwhelmingly devastating and rather depressing. Here are seven vital tips to ensure you don’t end up in that situation.
- Set a budget- This is the first step and the easiest step. This is the starting point. Take a look at your daily activities and set a sensible budget around that.
- Use Cash- Spending with an ATM card is usually easier cause you don’t easily keep track, so why not reduce that. Switch to a strictly all-cash diet and watch your money pile up.
- Keep track- Try as much as possible to keep track of your daily expenditure and ensure you’re not spending outside your previously set budget.
- Emergency saving- Try to pay off most of your debts and assign 15% of your income to an emergency savings account.
- Budget 25% of your income to personal things like your personal lifestyle.
- Use credit cards only when absolutely necessary
- Adjust your spending- Review your lifestyle and cut off any unnecessary spending and frivolous cost. This will go a long way.
So there you go!!. Budgeting is very crucial, especially for any business person.