Natasha O'sullivan September 27, 2020 Budget
It is understandable that with today`s busy schedules and the high demands placed on the working family that the last thing you want to do after a long day is to work on your budget. Unfortunately money problems do not go away by themselves. Either deal with them head on and find a way to work through them or they will catch up with you.
A budget is the most fundamental and effective financial management tool available to everyone and it does not cost a penny. Absolutely anyone can work out their budget and simply doing so helps you to see how much you earn, how much you spend and where you are spending it.
The financial planner will help you to determine which payments require regular payments and to build up reserves for unexpected payments. The regular payments include; rent payments, grocery purchases, tuition payments, credit card bills and general upkeep expenditures. It is wise to note that everyone has varied financial needs, and you should, therefore, structure your budget to include all your personal expenditures. Hospital bills are one of the payments which are unexpected because people do not plan to fall ill. Once you have calculated your regular expenditure, you can create a reserve amount to cater for unforeseen payment requirements.
The next step in the budgeting process is to ascertain what you spend on everyday items such as food and petrol. When budgeting, it is important to include all expenditure to do not forget to include even the smallest of details. If you grab a morning latte before each work each day then this should be accounted for within your budget. Last but not least, a comprehensive budget will also take into account estimated amounts for occasional costs such as birthdays, Christmas presents, holidays or dentist and optician bills. You may not have an exact figure but an estimate works just fine to give you an idea of how much this adds up to every month.