Effective budgeting is not something that you wake up one morning and then jot down on a Piece of paper and get it right the first time. Although most budgets start this way its only just the beginning of a ongoing process that never really finishes. It took me years to develop mine from the first time I typed out a basic budget on Excel to where it is today. The end result is something that puts more money in your pocket whilst giving you a better quality of life, the reason behind this is that you are able to see ways to squeeze value out of everything and it all adds up to thousands of dollars every year.
I wasn’t always like this, once upon a time when I was younger and dumber I was a complete spending junky! Was paid reasonably well by my employer and literally I had more money coming in than I knew how to spend. So its understandable it didn’t bother me spending more money on bills, rent or anything…. especially entertainment! Many people live like this, they have no reason to budget as they have more money then they need. Or at least they think they do. Thinking back now I could have saved thousands of dollars. This money could have been used for saving for a house or paying my way through uni.
So the tips on budgeting is to firstly think before you spend. Do you really need that expensive “whatever”? Think laterally how can you squeeze more value out of the money you are spending? can you combine bills like mobile and internet into a bundle that’s cheaper? Can you get the same value from an internet or phone connection from another company? Say you might save $30 each month and perhapse you manage to do this on 5 bills or expense. Suddenly you have an extra $150 per month in your pocket!. That’s $1,800 per year how would you spend that money? Haha that’s the easy part I know you will have a good answer too that. So the moral is think clever and budget wisely.