It’s a favorite topic of everyone. Or shall I say, it’s the opposite. We all know, that budgeting doesn’t work and most people don’t stick to it.
But what is the way out? We need to be able to have some kind of plan we can stick to, to maintain our lifestyle, not overspend as well as possibly save and invest for the future.
Here are few practical ways, I found budgeting to be less threatening:
1. Calculate how much you make after taxes
2. Track your expenses for a few months. 2-3 months. I like using mint.com. It does the job for me. It aggregates all transactions from credit card and checking account and calculates a real picture.
3. Evaluate where you stand. Knowing where you stand is a first BIG step in making budgeting to be your friend. Do you spend more then you make? Or your you live beneath your means?
These are very simple steps, but you know, it actually works! The goals here is teach you to be aware. It’s like anything else in life, if you don’t measure the results, who can you know what to improve?
Go any exciting budgeting tips you wanna share?