Many studies have shown that the majority of Americans are absolutely terrible at saving money. Not only do a majority of people in the United States live paycheck to paycheck, but over sixty percent of people do not have more than five hundred dollars in a savings account. This can spell trouble for your future, and when it comes to becoming financially responsible, you need to start budgeting so that you can get the most out of your income, and give yourself the financial freedom to make better decisions. It’s important to understand that when it comes to budgeting, you do not have to be perfect, but you do have to stay on top of it, which can be one of the hardest things to do. If you want to learn how to start budgeting today, keep reading for some great tips and tricks.
The first thing you need to do when you’re starting to budget is to analyze your spending. You can either do this by writing down everything that you buy (and I mean everything) during around a month, or you could analyze your online statements. However, one of the most popular, and easiest ways to make sure that you have accurate analyzation of your spending is to get an app. There are plenty of free apps out there that will not only track your spending, but it will also give you the information that you need so that you can easily organize your spending and better understand it.
After you have an idea of what your spending is like, it’s time to set your budget. Your budget should have at least four main categories. These categories will encapsulate all your spending for a given month. This is one of the most important parts of making your budget, so you should always try to make it as tight as possible. You may have to move around your spending and your caps for the first few months, but within three months you should have a foolhardy budget that will save you a ton of money. The categories in your budget should be rent, utilities & bills, groceries, and other. These will be all the money that you will spend for an entire month, so you may need to look at some reference and cross-reference that with the amount that you normally spend, as well as how much you want to save and spend according to your finances and goals.
When it comes to setting up this budget, you should put how much money you absolutely need for each of the categories first, and work your way up from there. You can cut down from everything from subscriptions for certain streaming websites, to your gym membership, and more. This Sport Chek coupon is a great way to get started on getting rid of unnecessary spending like the gym. Instead, you can invest in some great apparel and workout either at home or go on walks, runs, and more. This is a fantastic way to get into shape, save money, and get set up for your long term financial and physical goals.