Thinking about creating a budget -- and sticking to it – can be daunting, especially if you don’t know where to start. Budgeting ensures that you will have enough money to do and have the things that matter to you in life. Below are some strategies from the alooola® team that you can implement in your life to create and maintain a budget that works for you and your goals!
Why should we put in the effort to budget?
Puts you in control of your money
Helps you prepare for emergencies
Helps you work toward your long-term financial goals
Helps you ensure a better retirement
Decreases the risk for debt!
How do I create a budget?
Determine your monthly after-tax income
Look at your credit card statements
Add in any bills that you pay using cash and/or check
Categorize your spending into Fixed and Variable expenses (fixed= rent, utility bills, student loan payments, variable=groceries, gas, eating out, entertainment)
Analyze your variable costs to determine where you can cut back on monthly spending
How do I stick to my budget?
Be realistic and set priorities
Try to use cash more than your credit card
Plan ahead and discuss with yourself and/or others before making non-essential purchases
Allow up to 50% of your income for needs (housing, grocery, utilities, transportation, etc)
Track your spending
Ask for help! (financial advisors, friends/family, etc.)
Budgeting is a great way to ensure that you are consistently saving the money that you need for life’s necessities. Take some time to learn how to budget, and start saving with alooola® today!
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