Pat yourself if you are here and reading this blog. We love that you are really committed towards making a budget and tracking your expenses.
If you are still unsure about how making a budget can help you, then check out our blog: Why Is Budgeting Important? 5 Key Benefits
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Let us now look at five budgeting hacks that you cannot go wrong with:
- Always Save Before You Spend - The 50/30/20 rule is an easy budgeting method that can help you to manage your money effectively, the rule is to divide your salary into three categories - 50% for needs, 30% for wants, and 20% for savings, or paying off debt. With just these three categories in hand, you’ll save yourself the time and stress of digging into the details every time you spend. Sticking to the 50/30/20 rule will make it easier to stay on track and reach your financial goals.
- Avoid Debts - If you start keeping track of how much money one spends on habits like smoking and drinking, you would be shocked. As harmful as it is for your physical health, it will also eat up your budget if not checked upon. Think about how you can reduce the extra spend and eventually you will be able to follow your budget correctly.
- Do Not Overspend with Credit Cards - Many people lean on their credit cards when they’re earning a starting salary. While credit cards are useful tools, maxing them out is a financial burden you want to avoid as much as possible. And the more you spend on your credit card, the longer it will take you to pay off the balance, which means you’re throwing money away for the interest you’re being charged.
If you know you’re likely to get into bad credit habits, force yourself to spend only as much as you can pay back right away– that way, you’ll avoid debt. Don’t forget that if you do have more on your credit card than you can pay back immediately, it’s a bad idea to pay only the minimum required each month. As bad habits go, this one is costly.
- Do Not Go for Grocery Shopping Without a List - Buying groceries rather than eating out for every meal is a great way to save money. However, grocery shopping can throw you off track with respect to your budget. For one thing, many people spend more than the budget on impulse buys. So avoid this by making a shopping list before heading to the store and buy only what’s required.
- Use DIY As Much As You Can - When you are spending money on your internet, why not use it for DIY hacks to help you save from many small purchases that one has to do on a daily basis. Using DIY kits will help you save more and also help you learn some new skills!
A budget allows you to live a life with financial stability and security and helps you to take the first step towards Financial Wellness. So download the Wizely app now and get started!