To pay for our children’s future education.Demanding you cut all expenditure and sell everything not bolted down isn’t going to be the greatest proposal out of nowhere.įirst, you must ask why do you want to work on your finances? Is it cos you work too hard to live week to week? Are you saving up for a huge goal like buying your first home or paying off your student debts? Maybe you are earning good money and spending even better money and you want to get a handle on where your money is going? Write it down somewhere and put it somewhere you can easily see it, such as your fridge. This is particularly important if you are trying to sell the idea to your partner. Know Your Whyīefore you even start your zero-based budget, you should know your ‘ Why‘, that is why you want to change your finances. An Emergency Fund should be a minimum of $2,000, that is – enough to weather you through most storms! But of course, the sooner you can build your Emergency Fund up to 3 months of expenses, the better!īefore we start on the ‘How’ of budgeting, let’s get onto the ‘Why’ of budgeting. It’s important to have an Emergency Fund which will help you create a buffer between your budget and unexpected expenses like a Dental Bill or a flat tyre. Your budget should reflect your values and be completely unique to you. However, guides and rules of thumb, are just that – a guide. If you have Consumer Debt you would replace the 20% Savings with 20% to Debt Repayment. Rule of ThumbsĪ good rule of thumb for budgeting often shared is to Save 20%, Spend 50% and Enjoy 30%. As Rachel Cruze says it ‘gives you permission to spend’, you don’t have to feel guilty about buying that coffee every morning when you know that your bills will be paid and that your savings have already been transferred across.īonus: I’ve included a link to grab your own Zero-Based Budget worksheet at the end of this post to help get you started on creating your own budget. If anything, a budget is the complete opposite of that. It doesn’t have to be this noose around your neck demanding you enjoy nothing and miss out on everything you want. When you Create A Monthly Zero Based Budget you can spend guilt-free on what things matter to you. We all work hard for our money so why not take a little bit of effort to make sure all our hard work is not going to waste. If you have no plans in place for where your money goes, it’s going to be gone just as fast as it came in. A budget is a bridge between you and financial freedom.
0 kommentar(er)
