This is the goal I wanted to achieve from today. I want to learn smart spending. I have been very foolish in spending my money for several years, and it’s not helping me. I end up broke. Now is the time I should make a change.
Review of Expenses for the Past Months to Attain Smart Spending
Good thing that I use a tracker to track my expenses. I use the app, WALLET. It keeps a record of my Income, Expenses, and Balance. The more I record my expenses, the more I get frustrated by looking at my balance.
Here are the snippets of my expenses from January to May.
Whenever I look at my expenses, now I see where my money goes. As much as I can, I wanted to lower my expenses, but it becomes so impossible. But I realized that I should start by setting up my budget. For the past years and months, I was a fool. Now, I have to be smart by spending smart. I should start setting my budget before it’s too late.
Setting My Budget For Smart Spending
To help me better budget my income and takes control of my expenses, I will use the following budgeting tips. You can also do the same to make it less stressful to settle my bills every month.
Step 1. Determine my basic expenses.
This is the first thing I need to do. I have to separate my wants from my basic necessities. I have to figure out my fixed expenses every month.
Step 2. Determine my expenses that vary each month.
These include my fees that change, such as utility bills, because this may change quite dramatically.
Step 3. Set up an emergency fund.
Although I always do it, I don’t do it sincerely. I think it’s a good idea to create a safety net, so I need to set aside money every month to make sure that you have enough to cover necessary expenses or buy other items in case there is an emergency.
Step 4. Set criteria for my budget.
This is something I should figure out doing. I have to figure out my income and my expenses and set my budget goals according to the situation, such as how much money I want to save every month or how much I will spend on different things.
Step 5. Keep track of my spending and review it monthly.
I wouldn’t find it challenging to keep track of my expenses because I am already doing it. Now I have to become better in reviewing it.
Sometimes, It becomes hard to budget when you have so many expenses or spending for everyone in the family, but I will try to be better from now.
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