# How to stick to a budget and track expenses

Budgeting is a very hard thing to do if you don't know how to do it. Some of my friends are getting higher salaries than me but before the month end they do not have money anymore because they said the salary that they have is not enough. Sometimes it is true that when you have a reservoir, and has a big pipeline coming in, you also have the big pipeline coming out so the result of course is that your tank will not hold water and it will not be full because of pipe coming in which is smaller than the pipe coming out. Will this pipe can be compared to your monthly income, if you received let say \$5000.00 per month then why would you spend more than \$5000.00 in each month too?

Here are simple way to stick to the and track your expenses:

1.0 write all your monthly expenses like telephone bill, Internet bill, water bill, gasoline, foods and clothing and vices like cigarettes, drinking coffee outside, eating snack from the bar, cable TV and others.

2.0 If you have many credit cards, cancel all of them but one. When you shop use only cash.

3.0 After you list all your monthly expenses weigh which of those can be remove from your monthly bills. Like for example if you have a cell phone and telephone line, I think you could stop either one of them depending which one is more important to you. How about cable TV? Is it a necessity or just wants? Instead of eating a snack in the bar, why not pack a tuna sandwich from your house and drink water from the office instead of cola? Stop spending on things that are not a necessity. Fare going to office can be reduced by riding on friends car. I meant you can contribute for the gasoline and ride with them to save money.

4.0 Do not shop when hungry. Make a list before going to the mall or market. By the way you could save too much money when you go to public market.

5.0 Make a commitment to save at least 10% of your monthly gross income. Invest those slashed money in a good investment that will generate income at least 10% per year. If you do it after 10 years your investment monthly income will surpass your monthly income. This is a conservative computation.

6.0 Do not buy anything that you don't need like extra cellphone or laptop. It okay to buy laptop if you earn from it like having an online business.

7.0 Do not follow what your friends and neighbors are buying. Do not compete with them to please them. Remember it is your future that is at stake.

8.0 When you follow my advice compare it to previous month and you will realize that you can save more money following your list while gaining a ground for slow but sure financial freedom for your future.

Where can I invest that earns 10%?

lapak2000 8 years ago from Cebu, Philippines Author

Thanks for the question.

Here in our country you can invest in mutual fund which is not as risky as stock. Base on history it earns 105 to 12% but you have to wait for 5 years or more before you can withdraw the money. All investments are risky but not all have the same level. In my case I accept rentals like farm. I accept a farm then I gave money to the owner and all income from that farm goes to me. After three years he will return the cash to me, base on my computition I earn even 20% on it. Choose a farm that has income already like having a coconut trees.