Take charge of your money - find out where it's going

Being in charge of your money: TIPS ON BUDGETING 

With prices of commodities increasing day by day it is a very good idea to make your very own budget,

making sure that every penny you or your spouse earn is accounted for.

Make a start on coordinating your income and expenditures, this is cruicial to financial freedom and security.

Your out-goings (expenses) should ideally be less than your incomings (income).

Once you have written your budget, you may well find that this is not the case. It is now up to you to manage

your income in a way that allows for all expenses to be paid, and the remainder put towards paying down debt, or paying into your emergency fund.

If both of these are covered, put the remainder into your savings account.

Your source of income, lifestyle, spending habits, current job and house location, cost of living, payables and loans will  determine your budget. Starting to take charge of your finances is one sure way of feeling like your are taking charge of your life and on the road to success.

The following tips and recommendations will provide you with details on how you can begin to take charge of your money with a budget.

A budget will help your manage your finances and and perhaps assume a new outlook

which will help you become responsible for your spending.

Ø Grab a pocket calculator or just a pen and paper – Do the numbers on your purchasing needs. Compare prices across

your current location for the grocery and household items you need on a day-to-day basis.

Ø Save as much as you can on any big ticket item you are trying to buy.

Do your research and compare prices. Particular stores will price match an opposing store's price, use this to your advantage.

Ø 'Aim to spend less than you earn' – This is a fundamental priciple of financial freedom.

There is truth to the phrase that you cannot live in a world where you consume more than what you can produce.

Ø Determine your wants and needs – Limit your spending on wants, things which you are not in dire need of.

According to a recent study, luxuries are second only to gambling in terms of the detrimental impact they have on our of money.

Ø Keep a list – When you are out and about, write down any little purchases you make and be sure to keep receipts.

This will help you to see where your money may be dripping away to.

A wise consumer needs to consider the amount of any item they purchase and how will it impact his or her life. Do you have one already? Do you really need the latest and greatest? Can you make do with what you have and put the money you save towards your debt or emergency fund?

Sacrifice in the short term is well worth the ultimate goal of freedom from debt, freedom from worry about money......financial freedom.