- Budget smarter, not harder
Many people see budgeting as a straight jacket for their wallet, they stop spending money one entertainment or buying things they want. This is wrong and ultimately these types of budgets don’t work. Budgeting is about monitoring how you spend money and tracking it regularly. Once you properly understand how you are spending your money you can eliminate unnecessary expenses that don’t provide much benefit and if the funds are available spending more on the things that give you more benefit.
- Don’t Budget for uncertain income
Perhaps you’re counting on a promotion in your job or someone said they might be giving you money. If you are not one hundred percent certain you will receive the money and know the exact amount then it’s best not to go out and spend money you would have budgeted for something else as you could find yourself in a difficult situation if the money never comes.
- Budget for Uncertainty
Random expenses have a habit of turning up all the time always have an amount budgeted so you can be prepared to cover these expenses. One way some people have been able to overcome this is to budget an amount weekly for unknown expenses.
- Keep a Cash buffer
In the same way that small expenses can happen weekly, larger and more costly expenses can turn up without warning. A cash buffer is where you keep a large sum of money tucked away for these events. Things like having a car crash or loosing your job can happen during exams when you’re busy trying to study. Having that money ready to go can take huge pressure off so you can concentrate on getting by.
- Review your budget
Without a doubt the most important tip is to review your budget regularly. Peoples financial circumstances are always constantly changing. Regular reviews of your budget to adjust for changes is vitally important. It will help ensure you don’t have a rude awakening when you run out of cash because you were living beyond your means. Additionally it can help you better understand how your money is spent and you may be able to find ways to reduce expenses so you can spend more on the things you need.