Have you ever wondered why it is that some people always seem to have available cash while you always struggle with making ends meet and find it difficult to eke your cash out to your next payday? The reason for this could be that you aren’t budgeting your finances appropriately, if at all.
Managing your budget successfully means knowing exactly where you stand financially on a day-to-day basis and planning in advance for bills and unexpected payment requests. Creating a personal budget can help you take back control of your finances and move to the enviable position of having cash to spare at the month’s end.
Easy ways to create a personal budget
The first step to take in any budgeting exercise is to work out exactly what your income and expenditure is on a regular basis. If you’re paid monthly you should perhaps look at your overall monthly income and expenditure.
1. Note all income and expenditure on a sheet of paper
One of the easiest ways to plan your budget is to jot down all your income and expenditure on a sheet of paper. This means you can carry your budget around with you, if need be. But, you will certainly be able to keep an eye on your cash and spend totals more readily when they are physically noted down.
2. Identify what spare cash you actually do have
Once your regular income and expenditure are listed, you will be able to see exactly where your cash is going each month. And, this will enable you to start planning the best ways to spend your cash.
3. Set long and short term financial goals
There are really only two types of financial goals you need to consider. These are your immediate short term needs and your long term plans. Your personal budget statement sets out just how much cash you need to pay your regular outgoings each month. Long term financial goals could include outgoings you know you need to make during the rest of the year, such as holiday payments or car repairs. Savings and investments also fall into long term financial planning.
4. Know what disposable cash you have available
Going out on spending sprees at the start of each month can be one major temptation for monthly paid workers, but when you have a budget in place you will know exactly what disposable income you actually do have.
There are lots more ways to manage your personal budget and we’ve really just scratched the surface of this subject here. If you’ve never taken time to review your finances and set up a budget, this could be the main reason you find it difficult to make your pay last to the end of the month. Get in touch with BingoLoans if you would like to find out about payday loans to tide you over to your next paycheque.