Friday, July 13, 2012

How to budget to saving

Due to high uncertainty recently, we should create a budget to saving. There is high possibility that some company may fire some employee and it may be you. product price could increase over many times that you can guess before. The cereal, meat, eggs, fish and other food could increase that load the family. If they save money, they can overcome the bad situation like that.
We are should save to side the uncertainty. Create a budget to save is a first step to save your money. Here are the steps to make budget:
1. List all your spending every month. My mother used to record the spending in book or notes book. There are spreadsheet that can be used to list all of our spending.
There are the spending types, such as monthly spending, and yearly spending. For yearly spending such as taxes,vacation, college fee, and others, you should divide the amount money with the amount of month in a year. It makes your spending smooth.
Trim down some spending if possible. It can save your money. The rule of thumb budget is that spending is 60% of our income. However, for the employee whose has little salary cannot apply the rule of thumb.
If your spending percentage is higher than 60%, you are better to reduce the spending. A mom should clever to reduce the spending in tight economic. They can limit to buy grocery, buy cloth, or some else. Why do not use some generic brand to reduce the spending. There are lot things you can do to reduce the spending.
2. List all of your income.
Most employee has salary from their boss. Record how much salary that you can receive from the office.  Do not forget to include the bonus and other tips from the office. The employee work hard until night right to get more money. 
If the employee has other source income, they can include those income. The other income may help people to save. The excessive money we can use for spending and saving.
3. Allocate the money for saving
Saving is the spending today because it can reduce your money in wallet. However, the money just shift to other place such as cash box, precious metal, stock, and others.
Some people said that we can save 40% of our income. For people who earn little salary, they can reduce the percentage of income and reversely.

Read Also :
Disadvantages of Budget
Pros and Cons Budgeting Your Money
What is Passive Income 

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