Budget To Financial Freedom - Saving Tips that make your budget works

March 7, 2006 · Filed Under Uncategorized

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If you read my Formula to financial freedom, you will know budget is one of the important elements to achieve financial freedom. The main purposes of budget here are :

Set a system to guide your spending habits
Spend your money wisely by having a plan
Let your money not only cover your monthly basic expenses, but also help you paying down your debts and preparing money for your investment. (Only if you plan your budget like this and your money allow you to do so).

Again, budget is really important for all of us for better money managing. I know, however, sometimes it is hard to carry out and stick to your budget. This is why many people fail in budgeting.

Today, I want to share with you some of the tips and ways that I can think about which can make your budget works.

Direct Deposit

Leverage on banks and let them help you save your money from spending out. Most direct deposit arrangements, nowadays, can allow you dividing the funds between several accounts. So what you have to do is, just bank in all your salary into your accounts. Before this you may set a certain percentage to divide the money between your saving account and checking account or current account. So the main point of this system is it can help you save out some money for saving and also investing. ItÃ¢â‚¬â„¢s certainly easier to save money that you never see it in the first place, isnÃ¢â‚¬â„¢t it?

Convenience

How you choose your bank? I think one of the factors that we considered is how easy we can access the bank right? Yes, I agree that it is nice to have a bank that have ATM machine in every corner. But this may make you far too easy to get your money out from the bank and spend it. Why donÃ¢â‚¬â„¢t you consider putting your money in a bank that far away from you? Just make it a little bit harder to access your saving. This will block your actions to take out the money.

Envelope Method

This method of budgeting is so famous and being taught by many budgeting experts. In envelope system, you create envelope for different items in your budget. Then you just divide your salary accordingly. For example, an envelope market Ã¢â‚¬Å“Rent - $500Ã¢â‚¬Â and so on. The disadvantage of this method is you will keep a lot of cash in your house and maybe risky to you.

Save Changes

One way to set aside extra money is to use only paper money and save all of your changes. Give $6 to pay $5.41 and keep the $0.59. Then throw all the changes in a piggy bank or jar. You can save a surprising amount of money by doing this.

Tags: Budget Your Money