March 2011

Budgeting

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Budget
There are many ways to cut your expenses and so to have more disposable income and more money to save, but this is only one aspect of saving money. That’s because even if you were to save hundreds each month by buying cheap food, walking instead of driving and re-using your bottles, you would find that you ended up spending some of this saved money again in other ways – such as on nights out or on things you decide to treat yourself too. Thus budgeting is also highly important and this means telling yourself how much money you are going to save, how much you are allowed to use, and crucially – how much you are going to save.
 
Effective budgeting then means categorizing your outgoings. You need to decide what you normally spend your money on and then look at how much you are willing to spend on each aspect. So let’s say that you spend your income on food, entertainment and activities, transport, bills and rent, gifts and savings. Now what you would do is to start budgeting and work out roughly how much you need for each aspect and then decide on limits on how much you …