The benefits of creating a budget are as clear as day. Not only does it allow you to save money, but it can weed out unnecessary burdens in your life. For most of us, the majority of spending is useless and revolves around “spur of the moment motives”. By following a few steps and opening your eyes to reality, you will be able to create a life changing budget.
The first step to laying out your budget is identifying all of the holes in your bank account. You can say that the majority of your spending is for necessities, but hard data will prove otherwise. Ask yourself common questions in order to make your bad habits known. Is there something that you routinely purchase that you could actually live without? Starbucks is often a go-to for most people living a fast paced life, but how much income goes down the drain with this daily refreshment? Based off of studies done by CBS News, the average trip to Starbucks is going to cost about $3.25. Assuming you go 5 days out of the week, you will be spending $16.25 a week. Not convinced? That totals up to you spending roughly $800 a year. Does everyone purchase Starbucks daily? Not at all, but the fact remains that just about everyone has a similar spending habit that must be brought to realization.
After identifying your weak points, you can start to formulate your simple budget. Start out by putting an end to you spending habits. You don’t have to completely stop spending for the enjoyment of a nice cold drink or a quick meal, but instead learn how to cut down. Calculate how much you are spending a week and see if you can cut that number in half. Ideally, you should have the goal to do even better, but like most habits and addictions, it can be difficult to do at first. Experiment with a budget app on your iPhone or Android. Concrete data and charts will help you learn what’s actually comfortable for both you and your wallet. With switching to a healthier diet, you will start to see results as long as you stick to the game plan. If this guide was helpful, let us know below in the comments!
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