3 Tips For Keeping A Personal Budget

Keeping your personal finances in check can sometimes be trickier than it should be. Budgeting can seem arduous and unnecessarily, especially if you are earning comfortably. But making and sticking to a budget can be very useful in the long term and can help you achieve your financial goals-be it a certain amount in your savings account, or a down payment on a house. To help you along the way, here are some top personal finance budgeting tips.

Be realistic

Most people grumble at the word ‘budget’, much like they do at the word ‘diet’. But let me tell you something: budgeting does not mean you cannot have that proverbial chocolate cake; you just need to make sure it is in the budget so that it is taken into consideration. So the first tip is to be realistic –we all have things we like and we do not have to go on a restrictive money diet.

It is all about planning. If you are an avid poker player and like playing online at Royal Vegas casino, you do not need to stop –just set aside a chosen amount of money for this activity and stick to the budget. If you win more, you can play more too! Similarly, if you love shoes, set a cap on the amount of money you can spend on shoes in a month. If you are realistic about setting aside a certain amount of money for such needs then you are less likely to overspend than you would have if you had said “no shoes at all!”

Technology is your friend

When I went to college my personal finances were a mess because I never kept track of anything. I always groaned at the thought of having to write down every purchase and keeping the receipts for everything. But that was quite some time ago. 

Now we are very lucky to have some amazing mobile applications that sync with your bank accounts and can keep track of your finances for you! If you are not using such an app like Mint or Pocket Guard, go download one of them now. It really will revolutionize your life and give you a better understanding of how you are spending your hard earned money. 

Know your numbers

For your budgeting to be successful, you need to know how much money you earn as well as how much disposable income you have. So often we think of our net income and overspend because we do not take into account certain things.

Calculate how much money you are actually left with after taxes, medical, car and house insurance, as well as other debit orders that may come directly out of your account, such as rent, pension, mobile and internet plans. All of these essentials add up to a large chunk of your income. Understanding how much money you actually have after all these bills are paid is important as it will give you a better understanding of how much you can afford to spend on entertainment and other leisure items.