Do you find that your paycheck is almost instantly gone the moment you get it? Well I’ve learned that when I budget my money I see more of it by the time I get paid again. I am going to share with you my best tips for budgeting your money.
- Paying yourself First
- Knowing how much you get paid/how often
- Knowing your debts
- Knowing your cost of living.
Pay yourself first
It’s easy to eat or shop all your money away, but that’s doing the opposite of what we’re trying to achieve here. It’s important to pay yourself first above all else. Set a percentage or certain amount you’d like to put away into your savings account so it’ll be there as a cushion of anything ever happens.
You don’t always have to save the money you pay yourself, you can use it for anything you want guilt free, because it’s your money. I split the money I pay myself to use for entertainment and savings, but I also make sure I have enough money to get the bills paid and support my business endeavors.
Know How Much and How Often You Get Paid
Knowing this, helps everything fall into place. Doing this has allowed me to set realistic goals for myself when it comes to saving, paying off debt, and even investing. If you have a job where the paycheck varies, or you have many different side hustles, try measuring hours worked or items sold/services provided to get more accurate numbers.
Know Your Debts
Knowing your debts doesn’t just mean “knowing how much you owe” but knowing the interest rates, whether you’ll need to take out another loan, and how long it’ll take to pay-off. The goal with this should be to pay them off as quickly and effectively as possible. I’m using the avalanche method to pay off my debt as soon as I can. You can learn more about that below.
See also: Why You Should Pay Off Debt Fast
Know Your Cost of Living
Bills, subscriptions, debt, all of these things need to be paid. This is your cost of living. Knowing your cost of living, combined with how much and often you get paid go hand in hand. This is where you can set goals, like paying off debt, closing unnecessary subscriptions, and putting money away for bills and yourself.
Categories: Make Money