12/03/2016
Budgeting Skills by : Zukisani Ndwendwe
Facebook Finance Doctor and Motivator.
A budget can help you crush your outstanding debt, take charge of your financial future, and even become a happier, more relaxed person.
Depending on your circumstances, a proper budget may not require that you spend less. Instead, you may simply have to make more effective financial decisions.
1. Gather what you need to start tracking your spending history. Collect past bills, bank and credit card statements, and receipts that can allow you to put together an accurate estimate of how much money you spend every month.
2. Analyze your revenue and expenses. If your expenses are greater than your revenue, you are living way beyond your means.
Your budget should be divided into two groups:
- Fixed Expenses. These include regular monthly expenses such as bills, insurance, loan debts, food, and necessary shopping items like clothing and household products.
- Discretionary Expenses. Discretionary expenses are unfixed expenses that may be โoptional.โ Items that fall into this category include savings, entertainment, vacation funds, and other luxuries.
You need to take responsibility and manage your finances well, in so doing you will enjoy life to the fullest.
Learn to prioritize, and do things that matters first.
Alleviate pressure from your peers and start living within your means.
Source: (Google, 2016: Online)
Editor : Zukisani Ndwendwe