Net Gamblings

If you are reading this, you’re probably looking for a way to take control of your finances. The best way to do this is to create a monthly budget and committing to it. A sound budget is an essential tool for managing money, one that has allowed me to live well even on limited funds. One of the most crucial things that I do every month is outlining my monthly budget, and it has allowed me to consistently meet all expenditures, grow my savings, and eliminate debt.

I map out my budget for the coming month on about the 20th of the current month. This will prepare me with my expenditures in the upcoming month. It’s not a good idea to develop a budget after getting paid because, too often, that flush feeling of receiving a paycheck results to nonessential and impulsive spending before the paycheck ever reaches the bank.

Managing my personal budget involves outlining all the things that must be paid that month like mortgage/rent, utility bills, and other essentials like insurance, car loan repayment, transportation costs, and phone. These are the things I have pay to keep a adequate roof over my head and continue earning money. I like to pad these requirements to produce “money back” after paying the bills and, if costs increase out of the blue, I’m always covered.

Next, my budget is subjected to a list of discretionary things I need to cover but could live without if absolutely necessary. For example, donations, credit card repayments and monthly sving deposits. Don’t get me wrong, some of these things are also important, but in case of emergency they can be excepted. By paying credit card companies the maximum instead of the minimum, I keep my credit score high and my debt low.

My budget will not include the cost of food, clothing, or entertainment. Ultimately, these items get covered by what’s left in the budget. Some months involve lots of beans and rice, slow-cooker meals, free or cheap entertainment, and only one inexpensive piece of clothing . This strategy of handling my monthly budget has worked out very well over the long term as long as I honor it conscientiously.