Budgeting
Friends, your financial goals discover what you want receive, through budgeting, such as purchase is high, debts, and emergency funds.
1. Also remember the income you have
Count the gross money you are earn in a month.
2. Categorize expenses
Categorize your spending habits you might have house expenses, travelling, food, entertainment and debt repayment.
3. Divide percentages
Divide your earnings in category according to your priorities and financial goals.
4. The setup of a budget plan is required your monthly budget Plan
Write down the amount that you are going to receive (income) or spend (expenses) during every month.
Income - money that comes in (wages, etc.)
Expense - money that goes out (bills, groceries etc.)
This will enable you to spend your money wisely.
Expense Tracking
1. Select a tracking option
Choose a system to keep track of your spending (it can be a spreadsheet, a budgeting app or good old pen and paper).
2. Write down all the spending of money
Writing down all your expenses including the smallest ones in order to obtain the clear picture of the expenses.
3. Categorize expenses
Classify your spending according to the same categories that you had on budget like on housing, transport and food.
4. Do your analysis of how you spend
You should always check your spending every now and then to see where you can save and adjust your budget.
5. Change your budget
Depending on your expense checking, revise your budget plan in terms of modification of your expenses patterns or financial objectives.
The benefits of Budgeting and Expense Tracking
1. Financial clarity
Planning and expense cheking give a clear image of what you have and in which direction to go.
2. Reduced stress
With a plan and by checking your spending, you can relax from stress and anxiety about money.
3. Increased savings
Budgeting and tracking of expenditures is a way of discovering how and where to reduce spending so as to save some money.
4. More financial control
Healthy financial habits can easily be developed by sticking to a certain budget and monitoring you expenses and become financially disciplined.
Expense tracking and Budgeting tool
1. Spreadsheets
Google sheets, microsoft
2. Budgeting apps
Personal Capital, Mint, YNAB (You Need a Budget)
3. Pen and paper
Low-tech and low-cost tracking of expenses
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