Jefanie Genilla
You’d be surprised but most of us actually have much more money that we think. The problem is that it goes away on things we do not really need. People don’t even notice when money slips their wallets on eating-out, new dress, and so on.
Budget Apps
In order to see how much money you are actually spending, you might wanna consider using an app like Expensify, which allows you to scan and store the receipts. This way, you can remind yourself where the money went, once you run out of it.
But, using this app will only show you the problem, but won’t solve it. The only way to curb your expenditure is to approach it methodically, that is, to create a plan! Personal finance is a method that can help you maintain or even improve your lifestyle, while still saving up some money. When you put down all the expenses on the paper, it will be much easier to stick to the plan. Alternatively, instead of writing the budget, you can use a free budgeting app like Dollarbird, for example.
The better budget plan you have, the better the chances are for you to save up some money. In order not to get disappointed if something goes wrong, here are a couple of things to have in mind, which may cause problems to your budget.
Unexpected Expenditures Are Expected
The fact is that unexpected things do happen. It’s not a curse or God’s work, but just life. In fact, the life is full of unexpected things, which is what makes it so interesting. The key is in embracing them! This means that instead of just hoping for the best, you need to prepare for the worst.
Having an emergency fund is the key for good personal finance. If there’s even a slightest chance that your car might break in the near future, do not leave it to destiny. Instead, set aside some money for the purpose of fixing it.
The best thing about setting up a certain amount of cash for “just in case” is that you can spend it if nothing unexpected happens. Basically, if everything goes according to your budget plan, you can treat yourself by buying something with the money from that fund.
Forgetting About Certain Bills and Expenses
Your enthusiasm might quickly plummet if you realize that there are some bills and expenses that you have forgotten about. The solution to this problem is actually very simple. All you got to do is let your bank do this for you. With automatic bill pay, your mind will be at ease, but all the problems are not yet solved. What to do with the bills that vary?
When it comes to irregular bills such as insurance, which may come every couple of months, or electric bill which differs from time to time, the solution is to average them. Simply calculate the average amount by taking the amount you spent for the whole year and divide it by 12.
