Wealth and Money

5 Basic Budgeting Steps

2:21 AM

Frugality includes all the other virtues.
 -Cicero

Basic budgeting is a challenge for many. I know because I'm surrounded with people where in 90% are struggling to make ends meet. I too, have had my fair share of financial struggles.

Having attended several financial seminars, read financial books and blogs, and being a trying hard Ms. Frugal, here are 5 basic budgeting steps I'd like to share:

Break down your income into three parts (I've learned this from author Bo Sanchez):
10% - Give back to the universe/Tithe.
20% - Invest in your choice of investment. I prefer paper assets and profit sharing.
70% - Spend.




Know the difference between "wants" and "needs".
You need to eat food, but you want ice cream. You just need a few clothes, you shop like crazy.




Compare.
When buying something, always research, ask around or check the price of the item or service you need. Compare and see which brand offers the cheaper price without compromising the quality.
 



Make a plan and have a target.
Saying, "I'm going to save my money" is very vague. How much are you planning to save? When is your deadline? How are you going to achieve that financial goal? Plan. Make a system. Stick to it.

Be specific.
 



Be patient.
Nothing worth having comes easy. It's easy to be impatient if you don't see any progress or change right away. Think five, ten, twenty years from now. Remember the power of compound interest.

It is advisable to find your emotional why. Why do you want to save? What is your intention? What is your drive?



Imagine your future self.
Are you going to thank yourself now? Or curse it for being so irresponsible?






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1 comments

  1. Very informative budgeting ideas.......so needed in this day and age.
    Thank you for sharing with the Clever Chicks Blog Hop! I hope you’ll join us again next week!

    Cheers,
    Kathy Shea Mormino
    The Chicken Chick
    http://www.The-Chicken-Chick.com

    ReplyDelete

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