Sticking to your budget in 2011

If you found it hard to meet your financial goals this past year, the New Year can be a great time to evaluate your spending and saving habits. Knowing how to manage your money better can make it easier to stick with a budget and keep you out of financial problems. You need a budget whether you make thousands or hundreds of thousands of Rwandan francs a year. How can you know where your money is going if you don’t budget? How can you set spending and saving goals if you don’t know where your money is going? Whether you’re saving money for a holiday or to pay off a debt, use some of these essential tips for sticking with a budget in the New Year. Be honest about your current financial situation and be as accurate as possible when tracking your expenses, income and debts. Take the time to sit down and evaluate your financial situation by listing all of your debts, your savings account balance, and sources of income. No matter how much or how little you’re paid, you’ll never get ahead if you spend more than you earn. Pay yourself first! If you wait until you’ve met all your other financial obligations before seeing what’s left over for saving, chances are you’ll never have a healthy savings account or investments. Decide to set aside a minimum of 5 to 10 percent of your salary for savings before you start paying your bills. Better yet, have money automatically deducted from your paycheck and deposited into a separate account. Be Prepared for the Unexpected ,The number one budget killer is an unanticipated event, work on setting aside three to six months worth of your living expenses in an emergency account. Start small to get used to saving. Set aside five thousand francs a week and bump up the Prioritize your wants and needs so that you can set aside enough money for the things that are most important to you. Try writing out all of your expenses for the month; there is a common phrase that goes like “something written is something remembered”. Until you know what you’re spending, you’re going to have a hard time controlling it. When you are accurately recording your expenses and income on a regular basis, you’ll find that it will be much easier to manage your money and forecast your savings. This process can take a few months but your efforts will pay off in the long-run. martin.bishop18@yahoo.com