Want to learn how to budget money? Here are 2 practical tips:
Tip #1: Find Out All ‘Money Leaks’
Most people are concerned about where their money goes, with good reason: there never seems to be enough of it! The paycheck comes in, but it never really looks like you could have spent all of the money so quickly. These days, people tend to carry debit and credit cards more than cash. To figure out where your money is going, go back and look at your bank’s statement or credit card bill. The biggest expense that seems to accumulate very quickly is food — not just the necessities, but lunches and dinners out with friends and loved ones. This makes it easy to curb back expenses a bit by eating in. However, food is not the only expense. Look through old magazine subscriptions, newspaper subscriptions, extras on your cable or phone bill, and online purchases. It’s easy to spend a small fortune on eBay under the illusion that you’re getting a deal out of it.
Tip #2: Find Out All Sources of Income
Having multiple streams of income makes it easy to reach your goals faster — even if the secondary streams of income aren’t enough to replace your primary source of income, they provide a comfortable cushion against emergencies. You don’t have to be a Harvard MBA to create a secondary source of income — think about what you love doing. If you’re into arts and crafts, there are plenty of sites online to sell your homemade items. If you can create music or write, there are sites to sell music and unique content. There’s plenty of ways to make extra money, and providing a service in your spare time is a great way to bring in a little extra money.
If you’re not ready to take the leap into building a second stream of income, perhaps you can look to see what can be done with your primary stream of income. If you’re working for someone else, you may be able to ask for a raise based on your performance with the company. Be prepared to present a strong case for a raise and/or promotion, such as the direct value your contributions bring to the company.