My parents have taught me one of the most essential things a person must have: a budget. A lot of people take this idea for granted and end up regretting their purchasing decisions until it is already too late. The ultimate roadblock that keeps people from setting a budget is making it a habit. Ever since I was little, I’ve been keeping track of my expenses and savings in the hopes of becoming financially independent one day. My budgeting strategy evolved as I aged and I would like to share to you three simple ideas to help you come up with a budget plan.
Why Everyone Needs a Budget Plan
Once you have created the perfect budget plan for yourself or your family, you will realize that you have been wasting your money on petty (and useless) things. I am referring to beverages, alcohol, cigarettes, gadgets, too many clothes, diet supplements and such. These things are wants and not needs. You can even live without them. All of these useless junk will reflect on your budget plan and it will help you eliminate all the unnecessary expenses later on.
Idea #1: Personal Finance Planning Programs
These financial planning programs will help you organize and categorize your cash flows and expenditures. Every single detail of your finances will be presented with a cost analysis, which will make you reflect on your recent financial decisions. These programs allow you to input monthly payments and other expenses.
Some personal finance software even allows users to monitor their tax payments and make sure that they are not missing anything. Depending on your chosen system, the software will help you create a sensible monthly budget using graphs and diagrams. These features will demonstrate your current spending habits, and compare them with your investments, savings and bank accounts.
Some of these programs can be used for free while others offer packages for a fee.
Idea #2: Online Money Dashboard Services
Online money dashboards allow me to view all of my savings accounts and credit cards all in one place. This is a very convenient option for me because I no longer have to log into several money – planning websites or plunge onto the sea of bills and statements. It works similarly as when you use a personal financing program, especially with budget illustrations using diagrams and graphs. This is a very useful budgeting tool that helped me monitor all my bank accounts whenever I want. Continue reading