7 months into the year, how are you managing your finances? It’s okay if you haven’t figured it out. We are here to lend a hand and help you get back on track.
Let’s face it, managing finance is like rocket science sometimes.
Creating a budget is one thing, sticking to it is another.
It can be tedious and time-consuming but it’s one of those necessary evils – you need to do it to monitor your spending and make better financial decisions.
Having a budget allows you to eliminate debt, save and also build wealth in the long-run. Achieving all these things depends on your consistency as well.
Here are some tips to get you started on managing your finances:
- Creating a budget plan:The first thing in managing your finance is creating a budget plan. Budgeting gives you a clear idea of your financial situation, that is, an estimated summary of your Revenue and Expenses over a period of time. Are you spending more than your income? Is your income less than what you spend each month? Figuring this out with a monthly plan allows you to determine whether you will have enough money to do certain things or if you will be in debt.
- Tracking your expenses: Do you know how much you spent last month? In order to make budgeting work for you, you need to track your expenses. You need to know how much you spend each month. Here are some ways to track your expenses.
- Recording your expenses in an excel sheet or your notepad.
- Using the Getbarter App to do all your transactions. You will be able to see your expenses and manage how you spend, view what you spend on the most and track all your expenses.
- Stick to your spending limits: If you find 1 & 2 hard to follow, sticking to your spending limit will be ideal. Having a specific amount set aside for spending allows you to stay on your budget. So you’re not spending above your limit & it allows you to understand your spending habit to budget better next month.
- Understanding your Income: Once you are aware of your Income and the percentage you spend on your monthly bills and other things. The next step is to identify if your Expenses compared to your Income is a surplus or a deficit. If there is a surplus, you can consider saving more or investing. If it is a deficit, you should cut off less important things, like eating out. Your income should always exceed your expenses.
- Plan on saving money: Save at least 10-15% of your monthly income. If your expenses get too high that you can’t save, it’s time to reduce your spending habits. You can also save money by planning on what to save for.
Managing your finance is very simple and it’s also quite easy to turn your finances around but you have to be consistent with your saving habits. Start now with what you have.
“So, how much are you going to save from today?”