And only then you should even start thinking about spending. Many financial pundits recommend you set aside a percentage of your income as savings as soon as you receive your paycheck. It’s as important to save money for emergencies and future requirements as it is to spend it on the best options money can buy today. In one sentence, a good budget is all about prioritizing your spending habits on what’s important to you and your family. So get ready to buy the best quality, and if needed most expensive food, safety, house, and transportation options and impose a limit on impulse purchases in the mall, junk food, etc. If anything, it’s the opposite.Ī good budget will enable you to make the right investments so that you get the best possible health, wealth and leisure options.Įssentially that means you spend the maximum amount on important things and cut down your expenditure on non-essential things.
What is NOT a Budget?Ī Budget is NOT about cutting costs and buying cheap. With a personal budget, you can avoid that bad habit.
It’s human to over-spend when there is excess money on hand, and then cut costs (even on essential items) when there is not much money left. These two are the perfect recipes for a perfect disaster! The second easiest thing to do is not to stick to the budget. The easiest thing to do is not to have a budget at all. Check it out! Why should you bother about Ideal Budget percentages? You just need to enter your total income and it will give you the amount you ought to be allocating for each category, including a variance between high-end and low-end. In fact, has a Budget Calculator which gives you how much money you could allocate for which purpose, every month or year, based on ideal budget percentages. When you receive your paycheck, have you ever wondered if there are Ideal Budget Percentages that you could try and adhere to in managing your personal finance? The above Ideal Budget Percentages Infographic shows you exactly that.
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