Financial Services
Make ends meet in 2008, create a budget
People don’t realise the impact that financial stress has on personal health. Eliminate financial burdens by drawing up a monthly budget. If you are anything like me, you are probably thinking that sticking to a budget is nearly impossible to do. However, if you want to simplify your monthly financial responsibilities, try a simple approach. Looking at your monthly expenses and income in basic terms and figures will help you create and stick to a monthly budget.
You need to start by listing your monthly household expenses, gather all your personal information, bills and bank statements to see where your money goes to every month.
1. electricity
2. water
3. refuse
4. rates
5. insurance
6. subscriptions
7. telephone
After you have compiled this list, move on to yourself. Think in terms of weekly financial expenses to get an accurate monthly estimate.
1. petrol use
2. lunch money
3. entertainment
4. clothing
5. cell phone bill
6. monthly food bills
7. personal care – haircuts
Gather the above information, write it down on paper or use a computer program such as Microsoft Office Excel. Add all your expenses to get a monthly total. Subtract the total from your monthly income. You will either have a negative or positive answer. If your expenses exceed the monthly income, re-look at your figures. Your monthly expenses need to be less than your income. You need to lower your monthly figures if you can’t meet the budget. It may be possible to lower the following monthly outgoing money:
1. petrol use- try a lift club or public transport
2. lunch money – make your own lunch before heading off to work.
3. entertainment – try less expensive outings, such as a visit to the beach or a mountain hike.
4. save on electricity use by switching off appliances and lights when not needed.
5. re-think subscription to satellite or cable TV
6. Use your cell phone and home telephone for incoming calls only.
7. buy less expensive grocery items to reduce the costs of your monthly food expense.
You may worry that by lowering monthly expenses, your lifestyle will be affected. This is true, although it may only be temporary. If you keep on living beyond your means, your lifestyle and financial status will be severely affected in the future. Stick to a simple budget, give yourself financial security and don’t allow stress to negatively affect your life.
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