Money doesn't have to be hard to manage or become a big time wasting task. Here are 3 quick tips to get a basic budget in check, without spending more than 10 minutes each week.
This sounds incredibly simple, but you would be surprised how many people have absolutely no idea what their paycheck looks like after taxes, insurance, retirement contributions, etc. The easy way to do a budget is to plan to make as little as possible during the pay cycle. That way, if there is more income than planned for, you get to choose how to use it. A salesperson that gets a salary plus commission is a great example of planning this way. Any extra bonus money should also be treated this way.
There are 2 types of money people. Big picture or little picture. Some will want to utilize a computer to track every penny and place it into it's proper category. Others just want to keep a general idea how it was spent. Your goals with money and your dedication to your financial well-being should dictate this. For busy people, where time is a priority, use big broad categories like food, utilities, mortgage, etc. If you have the ability to track it and categorize it break down utilities into electric, gas, cable, internet, etc. There is no right or wrong, it is what you can comfortably do and still maintain your sanity.
Once you have tracked everything for 2 months, you should really have a good picture of where your money goes. My suggestion is to now create a yearly calendar and begin to plan for all extra events outside your normal monthly spending. Birthdays, anniversary parties, trips and vacations are all examples of extra spending that will occur within a certain month. This money has to come from somewhere else within the budget. Being able to save money monthly in order to pay for these unexpected expenses is the goal.
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