Just like no one leaves the womb knowing how to ride a bike or drive a car, no one enters adulthood knowing instinctively how to make a budget. It’s a skill that needs to be learned, just like learning to cook or doing laundry. Unfortunately, while doing your laundry incorrectly usually only results in a few pink shirts, budgeting incorrectly can destroy your credit and leave you in debt. These simple tips will have you budgeting like a pro in no time.
No matter if you’re a newlywed or a beginning budgeter, you’ve got to be honest about your needs, wants, and expenses. If you’re single, this means honestly considering your lifestyle in comparison with your income. Write down all of your expenditures, even if it’s just a quick fast food run or morning coffee. You may be shocked to find out just what your morning coffee is costing you when you add up the cost of every cup.
If you’re married, you need to share your needs and purchases with your spouse. Marital finance woes are the number one cause for divorce. She may want a new designer handbag and he may want a new flat-screen, but you both have to understand your needs as a couple. Communicate with each other. Work out a spending plan that works out for both of you.
Don’t Spend What You Don’t Have
The main rule of budgeting is to don’t spend what you don’t have. If you overdraw your account, you’ll be slapped with hefty overdraft fees. One way to avoid this is to get a Vision Prepaid debit card. It’s a card that’s accepted just like a debit card, but it won’t allow you to overdraft your account.
Don’t Give Up
Budgeting is for life. You’ll never be able to stop tracking your expenditures. However, you’ll ultimately learn a budgeting style that works for you. You’ll be amazed at how much money you’re saving.