Thursday, April 5, 2012

How to create strict budget

As the economic condition is difficult, some household try to reduce their expense so the income can balance the increases spending. They will bankrupt if they do not change their spending behavior. The key of the strict budgeting is that it eliminate all unnecessary spending but some household may difficult to definite the unnecessary things. They use to buy anything. In this article, I will explain how to create strict budget:
1. Recognize what you have spending last month. It could be a cornerstone of your budget. Have you record all of your spending. It will be better if we check our last three month spending as the cornerstone of our budget. We can describe the appropriate budget for us.
2. Decrease unnecessary spending such as holiday, leisure, goes to cinema, and others. Some people buy brand stuff that is very expense whereas some generic brand has similar quality. Do not splurge your money to those things. You can save the money into cash box or investing.
3. Not use credit card. Some people are tempted with credit card simplicity. They think that credit card can lower the spending. The credit card charge interest rate so it is impossible to lower your spending with credit card.
4. Limited the electrical use. Turn off the TV when there is no people watch it. Some family limit the TV hours so the children can study.
Use some energy saving electric such as TL lamp, save energy laptop, and else. You can use solar heater, for your water. It does need electric.
5. Some people can stick using car to trim down the spending. Use car when you need to go to some place where public transportation cannot reach it. If you want go to office, you can use public transportation such as train, tram, bus, and others.
6. Use some discount coupon. Some website offers free product for promotion. We may get a cup of ice cream, a bottle of ketchup, a bottle of milk, and so on. Some coupon also offers discount or rebates for certain product.
7. The spending should be lower than the income or revenue. If you find that the spending is higher than income, you have to revise your budget again. Trim down again some expenses until the budget balance. If you are difficult to cut the spending, you need to increase your revenue.

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