If you wish to take control of your finances, there is no other option: you must formulate a budget. While budgeting sounds horrendous to those who have never done it, it can actually make your life a lot easier, and help provide more money for both your lifestyle and your future.
Mathematically, it is quite simple. All you have to do is calculate all of your weekly and monthly expenditures, and then compare them to your income. Next, you prioritise your expenses from the most important to the least important.
Obviously, living expenses such as food, rent, and utility bills, will be on the top of your list. Meanwhile, takeaway lunches, nights out, and new clothes will be on the bottom of your list. This will tell you what you’re spending each month, and how much you can afford to cut out of your spending each month. It is recommended that you budget yourself to save 10% of your income every month.
Often, it is difficult to keep your motivation to stick with your budget. If you have trouble staying on track, set regular goals and keep track of your progress. You can begin with weekly goals. Once you are comfortable, you can progress to monthly goals. When you are comfortable with monthly goals, you can then work on quarterly goals.
Be sure to document your progress; it will help you see that you are getting results.
Treat yourself
If budgeting and saving are new to you, you may find both difficult at first. For some people, just watching their bank account get larger on a regular basis is enough to motivate them. Others, however, may need to be more creative.
If you find it difficult to save or stick to a budget, simply allow for small splurges within your budget. On a periodic basis, treat yourself to something you want, and enjoy it. You are not allowed to feel guilty, nor are you allowed to have even a microgram of regret.
This will be something to look forward to, and serve as a reward for your financial “good behaviour.”
