3 steps to perfecting your budgeting
Published on 25 Aug, Kimberly Francisco
Tracking
Use apps like Mint, Seedly or Wally to help you sync your bank accounts and track monthly expenses by uploading your receipts.
Use a spreadsheet to keep track of your monthly subscriptions to things like Netflix and Spotify and the dates that they’ll deduct the charges from your account so you won’t forget about them. Remember to update it regularly by adding new ones and removing subscriptions that you have stopped.
Check your bank statements at the end of every month to see if your spending is on track and more importantly, if there are any discrepancies.
With a plan in place, you should track your spending in the next few months to ensure that you are following through.
Handling payment
Bills
Pay bills on time to avoid late fees. Use cash instead of a credit card where you can as this will help you stay within budget.
Non-emergencies
Don’t dive into your savings for non-emergencies. Instead, wait till the next month to buy it. Or consider other ways to pay. Knowing the benefits between using cash, debit or credit card can help you afford the things you want without busting your budget.
Debts
If you have debts, make sure to pay off high-interest debts first. Another way that you can choose to tackle your debts is by snowballing them. This means arranging them from the smallest to the largest. Start by allocating as much money as you can each month to pay off the smallest debt first. Do this with the subsequent debts, until they are all paid in full.
Evaluating
Once you have planned your budget, tracked your monthly expenses and have handled your payments, it is time to take a step back and evaluate your efforts.
As budgeting can be overwhelming especially at the start, try to ease into it with a transition budget. It is a method whereby you create several budgets for the next few months instead of sticking rigidly to one amount every month. This will help you hit your monthly spending goals more easily, encouraging you to press on.
If you find you aren’t hitting your goals, perhaps evaluate the reasons why you are overspending. You might be spending more because it is the end of the year holiday or a festive occasion (think CNY, Hari Raya, Deepavali or Christmas!). Be sure to plan ahead and adjust your budget accordingly to be more flexible during those months, and tighten your belt before or after.
Once you feel comfortable with your monthly budget, aim to increase your account balance by $500 each month. Soon enough, you will realize that you have nailed the budgeting basics and are a master of your own money.
3 steps to perfecting your budgeting
Published on 25 Aug, Kimberly Francisco
Tracking
Use apps like Mint, Seedly or Wally to help you sync your bank accounts and track monthly expenses by uploading your receipts.
Use a spreadsheet to keep track of your monthly subscriptions to things like Netflix and Spotify and the dates that they’ll deduct the charges from your account so you won’t forget about them. Remember to update it regularly by adding new ones and removing subscriptions that you have stopped.
Check your bank statements at the end of every month to see if your spending is on track and more importantly, if there are any discrepancies.
With a plan in place, you should track your spending in the next few months to ensure that you are following through.
Handling payment
Bills
Pay bills on time to avoid late fees. Use cash instead of a credit card where you can as this will help you stay within budget.
Non-emergencies
Don’t dive into your savings for non-emergencies. Instead, wait till the next month to buy it. Or consider other ways to pay. Knowing the benefits between using cash, debit or credit card can help you afford the things you want without busting your budget.
Debts
If you have debts, make sure to pay off high-interest debts first. Another way that you can choose to tackle your debts is by snowballing them. This means arranging them from the smallest to the largest. Start by allocating as much money as you can each month to pay off the smallest debt first. Do this with the subsequent debts, until they are all paid in full.
Evaluating
Once you have planned your budget, tracked your monthly expenses and have handled your payments, it is time to take a step back and evaluate your efforts.
As budgeting can be overwhelming especially at the start, try to ease into it with a transition budget. It is a method whereby you create several budgets for the next few months instead of sticking rigidly to one amount every month. This will help you hit your monthly spending goals more easily, encouraging you to press on.
If you find you aren’t hitting your goals, perhaps evaluate the reasons why you are overspending. You might be spending more because it is the end of the year holiday or a festive occasion (think CNY, Hari Raya, Deepavali or Christmas!). Be sure to plan ahead and adjust your budget accordingly to be more flexible during those months, and tighten your belt before or after.
Once you feel comfortable with your monthly budget, aim to increase your account balance by $500 each month. Soon enough, you will realize that you have nailed the budgeting basics and are a master of your own money.
