As humans, we all deserve to have a healthy budget because no one wants to live an unhealthy or harmful life. Just as our diets are important for our physical health and well-being, our budgets are equally important for the mental health of each family. Managing your budget can sometimes be hard and confusing. This is especially true for today’s online business owners. With all of the technology available to assist you, it can be easy to lose track of things and make mistakes along the way. Budgeting should not be a scary concept! There are many ways to do it effectively, but if you keep these six tips in mind, you’ll find that it’s very simple!
Pay yourself first
Paying yourself first is a great way to make sure your money is working for you. If you pay yourself first, you’ll have a plan for that money, and it will be easier to stick with your budget. At the very least, it helps keep you from using up all your money before the month even starts!
Here’s how it works: Every time you get paid, take 10% of your income and set it aside in an account that’s just for emergencies or savings. That way, when an emergency strikes and you need cash fast, or if there’s something you’ve been wanting to buy but can’t afford right now (like a new bike!), at least that 10% has been set aside and ready to go.
Know your income and expenses
This is the most important step in managing a healthy budget. If you know how much money you make each month, and how much money you spend each month, you’ll be able to make sure that you’re paying for the things that matter to you and your family.
It’s easy to get caught up in the idea that there’s never enough money to go around, but it’s not true! You just have to be strategic about how you spend it.
Set a goal to save, then stick to it
It’s easy to get overwhelmed by the idea of saving money. The trick is to make a concrete plan that makes sense for your life and stick with it. Set up an automatic transfer from your checking account into a savings account, and set up an alert on your phone so that you’ll remember every time you get paid. If you’re having trouble saving, ask yourself: What would make this easier? Can I find extra work? Do I need to cut down on my spending?
If you’ve never had a budget before, try just tracking your expenses for one month—that will give you some insight into where your money goes and what changes need to be made to save more.
Make a plan for paying off debt
One of the most important things you can do to manage your budget is to have a plan for paying off debt. The best way to do this is to create a list of all your financial obligations and rank them by importance, then work on paying off that topmost debt first. This will help you get out of debt more quickly, leaving more money in your budget for other things.
Reduce or eliminate unnecessary spending
Saving money is all about making smart choices and eliminating the things that don’t provide value for your time, money, and energy. If you have a hard time saying no to a new pair of shoes or a new gadget, try asking yourself if you need it before you make the purchase. If the answer is yes, then go ahead and buy it! But if it’s not necessary—like that high-end product you’ve been eyeing—then put it back on the shelf and get yourself some extra cash instead!
We conducted a webinar on how to manage your household budgeting and how to get the most out of it. Watch the video for tips on how to manage a healthy budget.
Al-Tijaarat al-Raabehah also provides you access to a one to a kind household budgeting tool which will help you make your budget and also save it in a pdf format.
To use the tool click here
Staying within a budget can involve some difficult choices, and it can be incredibly frustrating when you go over budget. But with a little discipline, it is possible to stay on track and not go over your budget. Start small, but start today. It’ll be easier than you think