Sticking to your budget

Earlier today I was reviewing my income and expenses and it occurred to me that one of the ways to keep being financially literate is to learn to work with a budget and also stick to it.

In order to do this, the first thing you’re to do is to know how much money you have make and how much you spend, have a financial goal and then develop a budget that allows you to save towards the goal. To develop a budget that you can stick with you can follow the following steps:

– Keep a record of your monthly spending for several months. Include all the money you spend on items such as school expenses, clothing, dry cleaning costs, toiletries, groceries, diesel or petrol, entertainment costs, etc. Make sure that your record is an accurate picture of how you spend your money.

– Write a spending plan using your spending record as a guide, eliminating unnecessary expenses, and decreasing those, which may be too high.

– Revise your budget as necessary. When monthly bills change or are eliminated, your financial goals become different, or your income increases or decreases, a change in the budget is necessary. Your budget must be flexible in order for you to stick with it.

Related Article:
– Budgeting Myths you may be falling for (https://gbonjubolasanni.wordpress.com/2014/03/25/budgeting-myths-you-may-be-falling-for/)