These are 4 Budget Tips
Father George RutlerThe Church of St. Michael the Archangel’s Rutler believes strongly in spirituality but also believes in practicality. Rutler believes in a practical philosophy that you should not spend more than what you make.
What are some budgeting tricks that will help you make sure you can afford all your bills and still have enough money for the unexpected? Keep reading.
Tip 1 Use Zero-budgeting Finance
How do you define zero budgeting? You can assume that your bills have been paid, and any extra is considered zero.
Zero budgeting finance allows you to keep track and monitor every expense and expenditure. You will never exceed your limits.
Let’s say you earn $3,000 monthly after taxes. Manage your withholding carefully so that you don’t owe an unexpected tax bill at year end.
It is important to plan for $3,000 in income. You don’t have to budget zero to give to charity or to invest in the education of your children or yourself. This simply means you can’t budget. Never Borrow the money that you do not need in order to help your budget grow.
Tip 2 Credit card purchases should be limited
Although we aren’t saying you shouldn’t borrow money to purchase a home, a vehicle, or get rid all of your credit cards. However, if you don’t have the budget in place to repay your credit card bill on time, then that can lead to hefty rates, ranging from 17 to 24%.
Not to mention the fact that credit cards often have an annual fee. While a credit card is useful for renting cars, most credit cards have annual fees.
It’s not just an expensive vanity, but also a temptation to spend more than you can afford.
Tip 3. Budget for unexpected expenses
You should also save money for any unexpected costs, such as an emergency room visit.
You never know what you’ll need for car repairs or other urgent situations.
According to experts in personal finance, everyone should keep three to six months’ salary aside. For example, if your monthly income is $3,000, that would be a minimum of $9,000.
It will take nearly three years for you to reach your goal if you save $100 each month. However, you can be ready to cover simple unexpected expenses like $500.
Trip number 4. Trim your expenses
People don’t realize the impact that even small things, such as a Starbucks daily, have on their lives until they write every dollar.
Economize if you are in a tight spot. Switch to a slower package. Reduce the number of channels you subscribe. Don’t buy just by clicking on Amazon. Take the time to really look at the numbers.
You can avoid restaurants and carpooling, especially when gas prices are around $4/gallon. Father George RutlerTruly believes people can save enormous amounts of money.