Budgeting is not an easy task. It takes time, patience, and diligence.
What makes it more complicated is that there are different categories of expenses like fixed and variable costs. Fixed costs are those which don’t change much like phone bills, insurance premiums, etc.
Variable costs are those which vary like food bills, car fuel, clothes shopping etc
The first rule of budgeting is that you should always have a budget. This may sound obvious but without a budget, there is no way to measure your success or failure.
The second rule for budgeting is that you should only spend the money allocated in the budget for each activity – you cannot spend more than what has been allocated.
The third rule for budgeting is to make sure that you are monitoring your spending and understand how it impacts your goals and objectives.
Budgeting is not only concerned about your hard-earned money but also about your time and effort too. Follow these simple rules to make sure you have enough money for savings as well as personal expenses:
At The Nimbus Project we simply define a budget as a plan that determines what you can spend, save, or give away. This definition can take on different meanings for an individual based on their life stage.
For instance, a young person may not think much about retirement but saving for their first home is important. A late-career professional may be focused on saving for retirement and reducing expenses to build investment strategies.
Good budgeting starts with tracking your income and expenses. It helps to make an accurate record of how much money you are making each month through your pay or other sources of income like self-employment income or rental property income. Calculate the amount of money coming in each month against the expenses that are being paid out each month. The difference between the two numbers is your surplus or deficit – if it’s negative.
With uncertainty in the economy, it can be hard to make sure you are financially stable. It’s important to know how much money do “I” need every month in order to make sure you can always take care of your basic needs.
The monthly costs calculator helps you calculate the average costs of living within your budget by providing an estimation of what your monthly expenses will be. This calculator is designed to provide an estimate which may vary depending on where you live and what your specific needs are.
Tracking your expenses is one of the best ways to save money and work towards financial goals.
There are so many ways to stay on top of your spending, but it can be a lot of work. You can use spreadsheet software or pen and paper, but nothing is more efficient than personal finance software. Financial management software automatically categorizes your expenses and tracks your progress. These tools will save you time and help you manage your money more effectively.
There are a number of benefits to using a budgeting spreadsheet or finance tracking software. Firstly, it will allow you to see where all your money is going on an ongoing basis – this allows you to make informed decisions about changes in your spending habits and focus on making positive change going forward. Secondly, it will help you realize how much money for savings or retirement goals that you need to save in order to achieve them.
We are experienced financial advisors who operate in a professional and timely manner to serve our valued clients. Make the most out of your hard earned money by working out a budget that works well.
Interested in working with The Nimbus Project? To obtain the best budgeting advice, send us an email or make an appointment with one of our experts.