How to Set Up A Budget To Succeed

Everyone wants to save more money, but in practice it can be quite difficult. Here are some tips to save more money in your daily life by setting a realistic budget:

Decide What Is Most Important

The way to do succeed is to set goals and prioritize where your money is going. Maybe the most important thing for you is to give generously to charity, send your children to college, or to retire early. Those are great things to aim for, but you must first have a budget in place to reach these goals. Some simple rules to live by are, pay yourself first, track your spending each month, and pay off extra debt as soon as you can. These small things will make sure you are a winner when it comes to budgeting your paycheck.

Have A Short Term Goal

Set attainable short term goals to help motivate you to continue. It is often hard to pay attention to how you’re spending your money because being in denial is easy and buying what you want when you want sounds like fun. When setting up your budget it is a good rule of thumb to live by the 50/30/20 guideline. Have your needs be 50% of your income after taxes, 30% of your income should go to your wants, and 20% go into savings. Needs consist of rent or house payment, utility bills, credit card bills, groceries, gas, etc. Wants are eating out, movies, vacations, etc. The savings can go toward paying off extra debt as well, but make sure you are setting aside money each month that is strictly for savings.

Set Long Term Goals

Decide now what your long term goals are so that you can set yourself up. If you want to retire when your are 55, then decide how much money it would take and make a plan to save it. Maybe you want to pay your house off in half the time, you will need to know how many extra payments you need to make each year. The best way to succeed with your money is making a budget, setting goals, and having a plan in place. Things don’t always go as planned, but they always go better if you have a system along with some savings.

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