Money Tips - Budget Vs List

By Stephanie Boyle


Money tips, we all have ways that work for us. I have my own money tips that have helped me save up money and pay down my debts, but they may not work for everyone. What works for you may not work for your friend as I have come to figure out. We all have our own money tips and ideas. Let's look into a few of mine and some of the readers ideas as well.

May of us hear budget and it sounds like such a horrible word. Very restricting and hard to live by. The word budget in the dictionary actually refers toa list of planned expenses and revenues, not as scary as it sounds. Then we hear people writing out lists of what they purchase and it sounds like your money is flying all over the place and you wonder how you can keep track of every single pucrchase you make and where every cent goes. Which works best the budjet versus a list and which is easier to live by?

As I have come to realize you have to find out what works for you. For some people a budjet works and they restrict themselves to just the amounts alotted in the budjet and never go over. For the rest of us who may find that illogical to have a certain amount to spend on each aspect of our lives sometimes just a list of what our money is being spent on may be just enough to keep us on track. For if we go over one week on an item we go spend less the following week. But f or people like me however I find a mixture of both work the best.

I believe the "have a rough idea what you will spend and then go from there" idea. What I do is I start out with a list. I keep track for a week or a month to find out where my money is going to. Use a journal or keep all your receipts in a shoe box or a file folder. Sort out your receipts at the end of the month into piles such as housing, food, cars, insurance, debt repayment. Entertainment, clothing, savings, medical and dental, school, childcare, and investments. Miscellaneous and you will of course need to know your total income after taxes. That way you will know what percentage of your income you are spending. After you figure out where your money is going becomes when you can start working to make it better. Try to figure out realistic amounts of what should be spent weekly, bi-weekly or monthly on your expenses and then try to figure out ways to cut them down.