How to make a good budget!

Author : teriann

I was never a good Mathematics student in high school.  In fact, if the teachers laboured too long on discussing Pythagorean theorem and simultaneous equations, I usually tuned them out.

I reasoned that those formulas and equations would never be applicable to my daily life.

Fast forward to several years later and while I have still had no cause to use those particular theories, I realize that having a sound knowledge of simple math can help to create a practical budget.

Budget Problems!

Whereas having a basic knowledge of addition and subtraction are essential in creating a budget, there are other skills you must have when making a practical budget.

It is vital for you to be honest.  If you just randomly pick figures for your expense column, then your budget will show an inaccurate reflection of your expenses.

In order to correctly represent your expenses, take note of all you spent for the last three months. This means saving all the receipts and placing them in a safe place.

Another important skill is recognizing wants versus our needs.  It is vital we pay bills but monthly trips to the movies or the cost of a new outfit can definitely be excluded if we are trying to save money.

Unexpected events such as illness can cause you to have to adjust your budget. This is perfectly normal, expected and encouraged. It shows you are planning and then adjusting your plan as the need arises.

A good budget needs therefore, to have a flexible arrangement. This means if you overspend one month then for the next month you will need to cut back on particular items in order to remain on track.

Stick to it!

The biggest problems consumers face when trying to budget is simply not being able to stick with their plan!

It is important that your savings plan is not ignored when you go shopping and see a $10,000 outfit that you just have to buy.

It goes without saying that if you don’t follow your budget you will never be able to reap the rewards of saving and living within your means.  I know a number of people who live from pay cheque to pay cheque and have no savings at all to fall back on when they need it.

A well crafted budget will save you much needed cash!

What’s your take?

Leave a line below and tell me how you stick to your budget!

Teri Ann Renee Paisley

Gleaner online writer

Tags:

The opinions on this page do not necessarily reflect the views of The Gleaner.
The Gleaner reserves the right not to publish comments that may be deemed libelous, derogatory or indecent.
To respond to The Gleaner please use the feedback form.

Leave a Reply