You and I can agree that managing money takes a lot of effort, it involves conscious effort and this is not a piece of cake to handle especially when you have a lot on your plate to attend to.
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Truth be told it doesn’t always have to be this stressful to manage money, I know it requires Practical money managing skills and an applicable financial plan to achieve your ultimate financial Freedom.
So, if you are looking to take your financial life to its next level, I am making available for you three Practical budgeting tips you most likely would want to try out.
Develop your budget using the 50-30-20 code. Elizabeth Warren,an American politician and former law professor introduced the 50-30-20 rule. This method has been proven to be the most applicable and popular budgeting methods you can try if you are looking for ways to manage your finances.
The method is divided into 50%, 30% and 20%, when all summed together that is the total amount of money you take home (Your total income). looking into the rules.
- 50% —–This category entails crucial needs that cannot be questioned or left unattended.These includes rent, housekeeping, health care, transportation, groceries, electricity bills and other essential items on the list.
- 30%—- This percentage covers daily wants like movies and concerts, shopping, gym membership, adventure trips and vacations, eating out, new gadgets and other hobbies.
- 20%—- This last category contains your savings or financial goals,this will contain Depts ,investments, loans and retirement accounts.
Now that we’ve identified what each category means, you probably have an idea of how you will allocate your budget.
Make use of the resources you have: One personal budgeting tip that you can try is to use the resources in front of you. This doesn’t mean you’ll have to sacrifice your wants, but it’s actually more of prioritizing your needs.
Find a second source of income: Knowing where your money will come from is as important as knowing where your money should go during turbulent times. That’s why it’s essential to have side gigs or multiple income streams. This may sound challenging but not if you know what you’re good at.
You don’t need to be a pro to start. If you like computers ,you could try out Crypto Trading, it takes time but it is worth the while.
Tough times require tough decisions and that includes your financial health. You can move a step closer to effective money management habits if you add these best budgeting tips to your “To do list”. All it takes is your commitment to achieving financial independence.