Asian Accomodations

If you’re reading this article, you’re most likely looking for a way to have control of your finances. The best way to do this is to create a monthly budget and sticking to it. Having a sound budget is important for managing your finances, one that has allowed me to get on with my day to day life even on limited funds. Monitoring my monthly budget is one of the most critical things I do every month, and it has allowed me to consistently meet all expenses, grow my savings, and control debt.

I usually plan my budget for the upcoming month on about the 20th of the current month. This provides me with a clearer view of my expenditure in the upcoming month. It’s not a good idea to produce a budget after getting paid because, too often, that flush feeling of having a paycheck leads to unessential and spontaneous spending before the paycheck ever reaches the bank.

I start my personal budget by outlining all the expenses that must be paid on time like, loan repayments, utilities, insurance payments and car loans. The main idea is to apportion a budget for the things that I must pay to keep a adequate roof over my head and carry on earning money. I like to pad these necessities to produce “money back” after paying the bills and, if costs increase circumstantially, I’m always covered.

Next, my budget is subjected to a list of discretionary things I need to cover but could live without if absolutely needed. These items include monthly savings deposits, credit card repayments, and donations to charity. Don’t get me wrong, some of these things are also essential, but in case of emergency they can be excluded. By giving credit card companies the maximum instead of the minimum, I keep my credit score high and my debt low.

My budget will not include the cost of food, clothing, or entertainment. These things get covered by what’s left over and that’s that. Some months involve lots of beans and rice, slow-cooker meals, free or cheap entertainment, and only one inexpensive piece of clothing . This strategy of handling my monthly budget has worked out very well over the long term as long as I honor it religiously.