Today’s budget tip: Treat saving money like an expense!
Expenses are recurring things that have to be paid in a timely matter or your services will be cut off and you’ll have to deal with the consequences.
In order to not feel the consequences of a bank account with no savings, why not add an expense to your monthly budget called “savings”? By treating saving money as an expense, you can only expect to see your savings account grow, since it can help you create a habit of getting that money into the bank. Go one step further and have some money automatically deposited in to your savings. After all, when you save money, you’re paying yourself!
Are you in the habit of treating saving like an expense?
Setting a budget is important, but so is setting a realistic budget.
It can be really exciting, at first, if you’ve created a budget that shows you accumulating tons of money, really fast. But keep in mind, you still have to enjoy living. Enjoyment in life can mean different things for everyone, but having money within your budget especially for living life can actually help you stick to the budget you’ve set.
With a calendar or day planner in hand (or this handy Yearly Planner I created), take a look at the year ahead and mark down all the birthdays, weddings and other events you’ll have to purchase gifts for.
Decide how much you’d like to spend on each gift, then start putting money away every week so you have enough to pay for your gift when the time comes!
Do you do something like this already? What are your tips for staying on budget with gift giving?
Not everyone has a consistent income and this can create problems when it comes to creating a budget. However, it's definitely not impossible! It's perhaps even more crucial to have a budget in this circumstance.
Here are a few links that I found with tips to create a budget when you have an inconsistent income:
Here's a quick break down of the ideas to help you create a successful budget on an inconsistent income:
Determine your income streams
Develop a monthly average income estimate
Calculate your expenses to create your monthly budget:- Tally your fixed expenses (mortgage, etc)- Tally your variable expenses (electricity, etc)- With your discretionary expenses (clothing, entertainment, etc), come up with fair dollar amounts based on the lowest income month(s).
Any months that you earn more than normal, put that money into savings for the really low income months so you can still pay your expenses; and even put money into an emergency fund.
Do you live on an inconsistent income? I'd love for you to share your tips!
