for you to save money? Then try these simple techniques in budgeting your money.
Money is important in our lives, with out money we can't be happy, we can't be healthy, and we can't enjoy our lives.Below I will tell you the secrets and techniques in budgeting your money.
Know What You Really Need and What are your Wants
The first thing you should do is to differentiate needs and wants. What is a need? According to
Merriam and Webster dictionary needs are “of necessity” and wants are “to have a strong
desire for”.
So, what really are our needs?
Our basic needs are food, clothing and shelter. But, when we are sick we need medicines in order to get well. In our modern world, we also need telephone for communication. Transportation is also essential.
Wants: Do you got to have an Ipad2 ? Or new computer? Or that cute bag or shoes that
you are drooling? Or a bling for your car? Yes, these things are wants.
Since you are able to differentiate the two, you have to prioritize your needs over your
wants. Spend only for your wants if you have excess money to do so.
BUDGETING
The rule is: Do not spend more than you earn. I know a lot of people who are deeply in debt because they spend their money for non essential things. Be true to yourself when deciding if you really need it.
List down all your expenses and study it. What are non essentials? What things do you really need?
The list below are some of the expenses of an average adult with tips on how to save:
Your Food
A. It is best to cook at home. Not only it is nutritious, it also saves you a lot of money.
B. Buy local produce. It is healthier and you are also supporting the local farmers.
C. For your grocery needs buy it from the supermarket that has the lowest prices. Non perishable goods can be bought in bulk to have cheaper prices.
D. Use coupons for discounts
Your Home
A. Size.
Your home should be just big enough for all members to live comfortably. You don’t need a 4 bedroom house if you have only 3 members in your family.
B. Rent.
The reason for this is you also need money to buy your food and other expenses.
Rent a house that is cheaper.
C. Mortgage.
Buy the house only according to your needs. Compare the rates and get
the best deal. You are going to save a lot of money in interest rates.
Your Other Expenses
A. Gas. You can save gas by carpooling or if your destination is near, just walk. The
exercise to good for you.
B. Electricity. Unplug all appliances that are not in use. Turn off the lights when don’t
need it.
C. Cable tv. You can stop your subscription if it puts a strain in your budget.
Your Car
A. Just like your home, buy a car that is suited for your needs.
B. Negotiate for a discount or freebees, if possible.
C. Buy a car that is fuel efficient to save gas.
Your Credit Cards
A. Credit cards interest rates are high so always pay in full.
B. You don't need a lot of credit cards. Just have two and cancel the rest.
Your Health and Car Insurance
A. Shop around for the insurance that gives the best value for your money. Buy from an
insurance company that has a good track record.
Your Clothes, Bags and Others
A.Buy clothes that are classic and can be mixed and matched.
B.Don’t buy trendy clothes.
C.Buy items that are on sale.
D.Don’t buy designer logos if you cannot afford it. Don’t get a loan just to get a designer
bag or shoes.
COMMENTS ON SALE ITEMS
Buy only items that are on sale when you need it. Why would you buy a 70% off item when
you will not be using it?
NOTES
Your total expenses should be less than your income. Try to find other ways you can cut
your expenses.
SAVINGS
Pay yourself first. Save at least 10% of your income.
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