Budgeting

Do you live on your own or at least are only responsible for your own expenses? Do you know how setting up a personal budget can help you manage your finances? If you have the discipline to follow a budget, then you will be able to save for many things without any issue. Here are some budgeting tips.

First, be honest with your budget. If you know you are going to want to spend around $50 a month on beer, then put that into your budget so that you don't find yourself spending the money and not budgeting for it. This happens a lot where people think they can cut an expense out completely, but it just is not true and they over extend themselves.

The same goes for is you know you are going to want to buy some new clothes. You can cut back, but eliminating a habit that you love is probably not going to happen. Maybe you allow yourself $100 a month to spend on clothes or whatever fits into your budget. This will give you the sense that you can still do what you want, but in a controlled way.

Second, reward yourself for following your budget. You can use your clothing or beer as a reward. Maybe each week or month, when you have followed your budget completely you can reward yourself by allowing yourself to spend money on something you enjoy. Make sure this is figured into your budget though.

Third, do not forget expenses that you don't pay monthly. Oil changes, car repairs, license fees, home owner association dues, and other expenses that come along once a year or every few months cannot be left out or you will not have the money to deal with them when the time comes. You can budget correctly by adding these in and you will be better off.

Last, do not forget about the needy. It is very important that 10% of your income goes right to a charity or your church right off the top. In all honestly the entire 100% of your money is Gods and you are allowed to use 90% of it for yourself. The other 10% has strict orders to go help someone that needs it more than you. This needs to be included while setting up a personal budget.