These five helpful budgeting “Does” will make any budgeting system go much smoother.
1. Spend less than you save : Live within your means. This is a simple rule for wealth growing while utilizing a budget. Buy within a budget. Over the year a monthly spending average could raise or lower based on spending habits. Stay within Cap Budgeting Numbers to maintain growth. When cuts can be made, take advantage of this situation; you have earned it!
2. No credit cards : Credit cards accrue debt. When no money is saved over a person’s budget, then a Credit Card purchase should not be made. If a Credit Card is a necessity, then purchase only if the complete value is in an aside spending pile. This will help grow a line of credit and build your value. However, once Wealth grows, a line of Credit will not be needed.
3. Create Investments to Buy Wants : To purchase a car, house, or items that will accrue a loan payment, develop an investment. This investment will pay for the Want. A house has a mortgage which can cripple individuals living on a shoestring budget. Having an investment earning money over expenses will make purchasing things like these easier on the wallet.
4. The 6 month rule : If ever you want to purchase anything look at your monetary situation. If you purchased this item and lost your job on the same day, could you maintain a comfortable lifestyle and pay all your bills off within 6 months? If the answer is NO, then you cannot afford this item. Thus, save up for this item over your established budget so it does not cause issues.
5. Guess Low for Income, Guess High for Expense : You want to always be ahead of the game with free wiggle room. If a paycheck average is $263.00 a week, round down to the nearest dollar increment: Record it in your budget as $250.00 a week. Expenses should be Budgeted higher than their average by rounding up. Electric Bill averages $163.00 a month, record it in your Budget as $200.00 a month.
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