Take a moment to review your bank account, credit history and statement account, and peek at your wallet. How’s your finances going so far?
Creating a budget and maintaining it is already hard work in itself. Looking at the numbers and taking a moment to realize where your money goes and how little you’re able to save for a rainy day, emergency fund, retirement fund, and your weekly budget.
How do you suppose to save and maintain a budget that will cover for your necessities and secure your future? Now’s a good time to finally get your finances sorted out. Here are some tips on creating and maintaining a budget that works:
Determine your income
Before you begin creating a budget system, of course, you need to determine how much money comes in come payday, what are your sources of income, and where your paycheck should go.
If you have any side jobs or freelance gigs, put this in addition to your regular monthly income. Now, you have a rough figure of how much money you’ll be working on each month. This will then make it easier to decide where and how you allocate the funds.
Calculate your fixed expenses
One you have a concrete number you take on hand each month, it’s time to determine your fixed monthly expenses, how much debt you owe, and if there are loans you ought to repay.
Your fixed expenses normally include rent, food, utility bills, internet and phone bill, gas money (if you have a vehicle), transportation and lunch allowance, and the works. List your fixed expenses and beside that, write the amount each costs.
If you have an amount remaining, allocate that to repay your debts; as well as to your savings and retirement funds.
Set doable goals
In this day and age, millennials seek memorable adventures and experiences some of which doesn’t come cheap. Before you plan traversing the Southeast Asia, dining out at a fancy restaurant, or spending hundreds or thousands of dollars on the latest gadgets, set your financial goals first.
Where do you see yourself in 5 or 10 years time? Do you see yourself living in a bachelor pad, have a house to yourself, traveling the world comfortably, or wealthy and debt-free? If you envision yourself free from student loan debt and have your future financially secured, you might want to rethink spending thousands this year on your travel adventure. You can opt to revisit this dream once you have enough fund to cover for your rainy days.
Practice healthy financial habits
Do you find yourself always coming home with shopping bags at hand after a quick stroll at the mall? Often dine out and see the latest film releases? Find yourself swiping your credit card on things you only want but don’t need?
Overspending and impulse buying is a bad habit to break. But you definitely need to if you want to keep your finances well in place.
Track your progress
To make your budget system work and help you achieve your financial goals—track, monitor, and adjust your budget accordingly. Review your finances every week or fortnight to get a good grasp of how much money is left and how to work on it.
It’s important to have a regular “budget meeting” with yourself or your family to help keep your budget afloat and on schedule with your financial goals which will then lead you to financial success.
As a millennial, what financial challenges in creating and maintaining a budget have you encountered? How did you solve it? Comment below and share your thoughts with us!
About the author: Chie has spent time figuring out ways on saving money and stepping away from her go-to retail stores. She then became a writer for QuickCash Australia which offers hassle-free cash loans services.