Budgeting: Three tips for managing your monthly outgoings

The Art of Budgeting: Three tips on how to succeed on it

08:26 29 October 2013

Every month we have to deal with bills and payables that may make you wonder and worry sometimes if you have enough money to cope with your expenses.  Actually, you will not have to worry at all if you are confident that you are managing your finances well, meaning you keep track of all your earnings as well as your expenses.

With the ever rising cost of commodities, it will not be surprising if your budget a few quarters ago may no longer be sufficient for the present time.  Knowing this now, it is critical for you to be fully aware of the movements of your finances, both incoming and outgoing.

Prepare your budget

Initially, you have to know how much money is coming to you and where this money goes.  We cannot remember and compute everything mentally so we have to list everything down.  It is important to know the net amount you are likely to take home after taxes and deductions. If you have other sources of income such as part time jobs, child support bonuses from employment or interest and returns from investments, include them as well.

The second step is to list down all your regular and inescapable expenses such as utilities, mortgage payments, transportation or fuel, food.  Keep your receipts for the month so it will not be hard to reference your expenses.

Make use of credit cards

Although using the credit card is regarded by many as a frivolous debt, if properly monitored, it can really be a big help in managing your expenses.  You can use one card for all your expenses and analyse how much you spend monthly for each category.

Just do not overuse it or it will become your most vicious enemy because if you are tempted not pay your credit card bill in full in favour of other payments, the refinancing charges can override all your budgeting efforts.

Control your debts

If a time ever comes whereby you are in a quandary over paying several debts simultaneously while struggling to meet the household expenses, then it might be time for you to seek help. You can apply for debt solutions that could fix your monthly payments to a level you can afford until you are able to regain your financial footing.