Business

Budgeting on a Reduced Income

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BudgetIn times of economic crisis, we learn to do more with less. Whether that”s less money to spend on needs for our family or fewer employees due to downsizing at our daily job, the word “budget”# has now become an integral part of our everyday vocabulary.

Here are some tips on cost saving measures to help you cope with the daily challenges that a low income presents.

Monitor your current spending. Make a list of all your fixed expenses, such as rent or mortgage, repayment of bank loans, and insurance payments.

Calculate the monthly portion of all bills. This includes everything from insurance to cell phone, rent to utilities.

Determine how much cash you withdraw and where you spend it. #Take an average over the last few statements and list everything you remember buying.

Examine your credit card statements. Be sure you know how much was fixed expenses and how much was discretionary. Also record of how much interest you”re paying each month.

Set money aside for unexpected emergencies. No matter what your income and no matter what percentage, just get in the habit of setting aside something for possible unexpected happenings.

Information from thenest.com

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