Wondering why are you wasting your time in budgeting? It is not a waste of time at all. Rather, it is the right usage of time in order to meet every day expenses. Budgeting not only helps you in saving money but also helps you meet your daily need without worrying much. Budgeting is nothing but working on your affordability so that you can use the money in the right way.
Budgeting on your own
Budgeting is helpful in many ways. If you spend some of your time today for budgeting, you may be able to reap the advantage on a later date. For, if you ignore budgeting now, you will have to consider various serious matters like your finances and your affordability, your income and your expenditure, no money for one-off expenses and so on. If you consider these matters from the beginning, you will easily be able to avoid money problems at the end of the month or even throughout the life.
So, what are you required to do in order to budget for one-off expenses such as home maintenance, car registration fees, routine medical expenses? Read below to get some ideas.
List your total income
You will have to list down your total income in order to create a budget. You need to have a clear idea on the total income that you have and thus affordability. This will help you in deciding as to how much you can actually afford to expend.
List down all expenses
You will be required to make a list of all expenditures in order to check the total expenditure. This will help you decide if you are able to stay within your limit. If that is not the case, you will have the option to cut down the expenditures as much as possible which you think you can actually do without. This will help you in lowering the expenditures and saving money.
Opening savings account
Opening savings account is most easy yet convenient way to save money for one-off expenses. Try to keep aside a certain amount of money each month. When you need money for car registration fees or medical checkup, you can easily draw the money from your savings account. Try to search a bank where you can open maintenance fee free account. Many banks are offering free savings account. So take the advantage of it and open multiple savings accounts for different needs such as one for one off expenses like, birthday parties, festivals, bills, one account for long term financial planning.
Lower usage of credit cards
You will have to try and lower the usage of the credit cards in order to stay within your affordability and lower expenditure. You will have to understand that money is one of the most important things for your livelihood and so it is required to use it in the right way. Budgeting helps you understand your responsibility towards money and the importance of money.
Don't waste annual bonus or extra income
Try not to waste extra money such as solid amount of cash as your birth day gift from granny or relatives or annual bonuses at workplace. It is very tempting to blow away painless money. But if you save this money for the one-off expenses, you will get the benefit later on.
However, other than budgeting on your own, you can also go on to create a budget based on your affordability. This sort of budgeting is ideal to meet one-off expenses and also keep some extra money in bank account.