Art of Budgeting

Usually when we have some money to spend on, we always making the plans for what the things that we would buy in the future. The plans that we're going to make to spend money for the things we buy later is called budget. Managing budget is really important, depends on what situation that we must spend the money and not to spend the money.

There are two situations that you could manage your budget without losing all of your money in the critical situations.

1. When you have money

It's nice when you have money that you could spend it for anything and everything you want. But you should think before spending your money for your things you love. You can save your money for better things or expensive things that you can't buy in the certain time.

2. When you don't have (enough) money

This is the critical situation. You probably thinking "how I am gonna buy the things that I needed most when I don't have money at all?" When you're facing the situation like this, the best option is save your remaining money for couple of days. The more money you save, the bigger chance to buy some important things in your life.

How to do budgeting?

1. Know How Much You Have

If you have savings, checking accounts, investment accounts, or any other financial instruments, you will want to know how much money is in each account as well as the interest rates and expenses of each one. Make note of this information as it will become important in determining your net worth and the best use of your capital in the future.

2. Organize your Budget

Separate your budget into two basic sections: income and expenses. Fill in each section with the information as you calculated it above, marking down a separate entry for each individual source of income as well as each expense.

 

3. Update Your Budget - Daily
Tracking your money this way will take minimal time, and you'll be less likely to forget something.

Just remember one thing, the more budget you make, the more money you can save