Coping with things that control your budget

Feasible tips to manage your budget well and make it work for you

11:21 22 October 2014

People think that thinking about money all the time will make them good financial managers. However, this is not the case because good money managing habits determine the weekly and monthly expenses. Money management entails realising when money is available, when to clear debts and when to spend wisely.

 

The guidelines stated below will help you gain control over your budget.

 

Sort Out Income and Expenses

 

If you want to make your budget work, then you must make a note of your main sources of income and expenses (think of essential necessities such as utilities, bills etc). Other sources of income could be insurance claims, tax revenues or even bank dividends. Also, jot down the financial commitments you have made for the month.

 

Think about getting an overdraft

 

In as much as you may have your budgeting plans in order, you might find yourself in a fix. When this happens, you may be forced to break your budgeting rules and spend more. It is advisable to be in contact with your bank and inform them about your situation. By so doing, they may possibly grant you an overdraft on your existing account. 

 

If you previously had an existing overdraft agreement, your bank can still get an increment for the interim or permanently. However, do not be fond of overdrafts. Instead, view them as temporary solutions. Make a habit of analysing your budget and cut down the costs if possible. You can also make additions as other needs arise.

 

Careful use of credit cards

 

Apart from getting loans, you can borrow money by using credit cards. You will pay no interest for up to 8 weeks if you clear your balance on time. Note that if you only pay the minimum, you will take longer to pay the amount outstanding and wind up paying more than you want to. In this regard, pay your credit card bills as agreed to avoid penalties. You will also have a good record that can help you enjoy benefits such as bonuses.