We all know it is hard to stick to a budget. And if you young and just started your first job then there is no such thing as a budget. But if you are older, married, single or divorced you know that you will have to discipline yourself every month to stick to your budget no matter what, cause if you don’t stick to your budget you will just end up getting deeper and deeper into debt, and spending your hard earned cash to pay off debt is not a life.
Tip: Always keep track of what you spend your money on.
So what do you do first?
Separate your wants from your needs.
Here is a list of what you need to budget for every month. You can add to this list to provide for your own needs.
- Rent / Home loan or Bond (Even if you still live with your parents contribute something)
- Home loan Insurance (If you have a bond)
- Property Insurance (If you own a property)
- Home or any other items insurance (If have expensive items then it is a must)
- Car Loan (If your car is paid up save for maintenance and repairs)
- Car Insurance (Always make sure your car is covered)
- Water / Rates (Rates if you own the property)
- Travel Expense (Public or Petrol if you have a car)
- Groceries (All)
- School Fees (If you have kids)
- Credit Card (Only for emergency use)
- Other Accounts (Clothing etc.)
- Mobile Phone Contract
Accounts to avoid
I listed other accounts above, this can be clothing or any other expense account you have. But try to avoid opening various store accounts where you can buy on credit.
Personally, I stay away from clothing and furniture accounts I view these as a consumer death trap. In my younger days, I had these type of accounts, I realized later in life that it was no good. The accounts just never got paid up, I will spend money on items I never really needed. I paid up the accounts, closed them all. Now, if I want something or need clothes I pay for it cash. I know, saving for items is hard. A person always wants something now not later. But saving for it makes you treasure the item more, gives you time to fall into that regret purchase and sometimes by the time you can afford it something new will be on the market.
So consider going that route to save the money for the stuff you need rather than want in your life.
Tip: Calculate your budget make sure you keep track of your expenses
More tips on managing your money.