How to Make a Budget Plan

Making a budget plan lets you keep track and control your spending. It ensures that you will always have enough money for the things you need and see if there is extra money for the things you want. Following a budget or spending plan plays an important role in saving and will also keep you out of debt.

Here's the basic steps to set up a personal budget plan, keep on top of your debts and start to save regularly:

1. Categorize your expenses. 
2. From your list of expenses, develop two separate budget lists, one for essentials and the other for extras. 
3. Look through these lists to find flexible budget expenses where you can cut back. 
4. Estimate what you spend. 
5. Add up your budget essentials list and the extras list separately. 
6. Subtract the essentials total from your monthly income and, if you have money left over, subtract the extras total from that amount. 
7. If your extras list takes you into negative numbers, start looking for places to cut back. 

Feel free to download this free printable personal budget planner that I am currently using. Check this out!

The Importance of Saving Money

This blog will show you numerous tips on how you can save time, energy and most especially money in your daily life. It will help you find alternative ways of saving and assist you weigh up your options.

But have you ever thought about why is it important to save money? People have the tendency to find excuses for not saving. I bet, you probably have a few of your's as well. Now’s the time to shake off the excuses for not saving and reap the benefits of saving as early and as often as you can!

1. Peace of Mind 

Unexpected events such as sudden job loss, death of a loved one, illness or other unexpected occurrences can stress us out if we are not financially prepared for it. As much as we do not want them to happen but the reality is that they do. And most of the times, things happen when we least expect them. What's worst is when you're facing an urgent situation and not being able to find where and how to pay those unplanned expenses.

Setting aside an Emergency Fund can give us a peace of mind when unexpected expenses come up. The key to building an emergency fund is to save even a small amount of money every month.

 

2. Security

What do you plan to do when reaching at your retirement age? Do you plan to travel? Or is there anywhere or anything you dreamed to go or do?

Without having enough savings when you get to that stage, can really be frustrating. What you get from Social Security will just be enough to make ends meet. Thus, start saving now to guarantee the financial security of your future and enjoy life to the fullest.

 

3. Financial Freedom

Financial freedom is the ability to make life decisions without the fear of any financial limitations. One factor of reaching a financial freedom is money management. If you don't live within your means, it won’t put you any closer to financial freedom or independence.

You can start steering towards that goal by simply tracking your expenses and learning to save and budget.

 

4. Happiness

According a survey by Ally Bank, saving money can have a significant positive impact on your well-being.“Happiness continues to grow as savings accumulate. In other words, a big savings account may contribute to happiness more than a big paycheck.", affirmed by Ally Bank.