How to make a successful budget.

Although shopping during this season might be attractive, it is  important to remember that it takes a short time to sink into debt and a long time to climb out.

Credit card or hire purchase payments can take a heavy chunk out of your salary so it is wise to count your costs before you spend.

What about those items that you just can’t do without?

Well this is when a budget will come in handy.  A budget is simply a plan of how you are going to spend your money each month.   I did not know how important it was to have a written budget until I realized the money I was earning was scarcely covering my expenses.

Most people have a vague idea of how much they need in order to meet their needs each month.  However, having a written budget showing exactly how your salary can be stretched can go a far way in providing some financial relief.

Budgets can be successful if you follow these guidelines:

• List all your expenses in order of necessity.
• Account for emergency situations. (such as illness)
• Allow yourself money for entertainment. (reduce costs by renting movies instead of going to the cinema)
• Set aside money each month in a saving account.
• Stick to the plan. (No plan will be effective if you don’t follow it)

Enjoy making your budgets! Turn it into a family activity and encourage the children to make a game of finding out who can save the most money! Do you have a budget? Let me hear from you!