“Money makes the world go round”, and all of us are certainly a part of that world. Since “money doesn’t grow on trees”, wise money management – planning how to use our money – makes sense. It doesn’t mean cutting out all the fun from life or going without things we’d like. Budgeting actually makes money go further. Here are six tips that will ensure that you will have enough for your necessities, and in time, even your desires and dreams.
Income: Add up your total money received for a month or fortnight from all sources.
Outgo: Make a list of all your expenses for the same period of time as your income.
Balancing: Compare your income and outgo, and if your expenses exceed your income, make needed adjustments.
Checking: Keep track of where your money goes. For each pay period, record how much was spent for what.
Saving: Set aside a part of your income each month for the unexpected or for something special that you wish to purchase when you can afford it.
Investing: Put the money set aside for savings in the bank to avoid impulse spending.
At first, managing money this way may seem unnatural or even impossible. But don’t give up – it will be well worth it. And finally, the better you learn to manage your money, the more money you’ll have to manage!