Therefore, difficulties with money and money handling affect your health and well-being, because money greatly influences our emotion. The feelings of contentment and happiness that comes with a loaded pocket, or the feelings of insufficiency, fear and anxiety that goes with an empty pocket are all indications that money plays an integral role in happiness, health and well-being. Besides, who can a get a good night sleep, when worries about paying an overdue bill fills the mind, or when the phone is ringing off the hook with calls from harsh and unfriendly bill collectors?
Since issues with money can negatively affect your health, it becomes imperative to learn proper money handling habits, to save yourself the worries that come with financial burdens. Of course, as any financial expert will advise, creating a budget and effectively implementing the budget is a very good way to forestall financial problems. We must, however, admit that there is nothing as worse as an ineffective budget, or one that got you into more problems. Thus, learning effective budgeting skills is also important.
To draw a budget, you must first objectively re-appraise your monthly expenses and income. It is very important to be able to come up with a fairly accurate monthly income and expenses. Estimating the monthly income might be quite easy for people that earn a fix amount weekly or monthly, but for people that run personal businesses or whose income depends on a number of factors, this might not be such an easy task. No matter the case, get an estimate of your average monthly income. Then write list your variable and recurrent expenses as accurately as possible. This is will give you a clear idea of whether your expenses are overshooting your income, or if you are leaving no room for emergencies. Here you can cut out unnecessary or unimportant expenses, based on your disposable income. Keep a separate list of items you would like to get, but which are not so important. You can gradually include these items in subsequent budgets till they are all settled.
To make for an effective budget, it is a good idea to set up an extra amount that each partner can spend monthly or weekly on anything they want, with an understanding that once it is spent, that’s all. It is also a good idea to provisions for emergencies by setting aside a particular amount of your budget for this. This ensures that you are never caught off guards by any sudden financial requirement.
It is one thing to create a budget, implementing the budget is an entirely different case. Following a budget requires serious financial discipline and commitment. Learn to spend your money only on items that you have listed in your budget, whatever comes up during the month, as long as it is not an emergency, keep it in your other list of items to be attended to later, and depending on its importance, you can include it in your next budget. There is nothing as relaxing as going to bed feeling like you are in control of your finances. If you need help, there are countless non-profit organizations that offer budgeting classes and credit counseling services at no charge. They can greatly help you put your finances on the right tract if you make the move today.