I figure up exactly how much I make, on average, in a month. I then list out my major expenses (mortgage, food, retirement, utilities, etc.). I list how much money I need for each of those. Once I have that listed, I figure out exactly how much I have left over. I then list savings, entertainment money, etc., and figure out how much I need for each of those. Anything else will usually go towards savings, food, or anything additional that I may need that month.
I have never really used a budget, per say. Since I've always had the mentality of saving regularly and spending wisely, it has not been needed. When purchasing products or services, I always determine to "shop around" and compare prices, thus saving me money on a regular basis. The internet makes it extremely easy to find out what a product is really worth. I decided long ago that consumer debt was my enemy and I only buy things that I can easily afford. This attitude has enabled me to enjoy the fruits of my labor and to be able to give to the needy, all the while enjoying a simple, yet sufficient lifestyle.
With saving, I put a significant percentage of my income into an account separate from my checking account. But in reality, by not spending money on things you do not need, you will automatically be saving and accumulating money.
The foundation of growing your net worth is getting your spending where it should be and disciplining yourself to not waste your money running up debt.
Before I get my paycheck, I make a list of how much to allocate for each of my needs. For example: $1000 for bills, $1000 for savings, and $1000 for groceries. This is based on how much I spend for 2 weeks. And I make sure never to touch what I already saved. I have a separate fund for emergencies. It takes discipline of course, but if you really want to afford the lifestyle you want, we need to make little sacrifices.
Budgeting and saving are the important aspect in every ones life. But, If we have a standard income, we can prepare a sheet accurately. And we can plan a savings. Cutting down all the unnecessary express, and saving as much as I can. Along with budgeting and saving, It will be better, if we can try to learn how to make additional money, so that it may be helpful, when things goes wrong.
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