Taking the Stress Out of Personal
ways of achieving your personal budgeting goals
with these six stress-free budgeting tips
Creating and following your own budget is the best preventive measure you can take
against unwanted debt and/or a less than healthy savings account. Sitting down to create a personal budget can be
one of the things we tend to avoid; after all, we know that committing to a budget involves discipline, and
Still, budget setting is vital to achieve the most important things we seek in
life - especially larger life goals such as owning our own home, starting a business or saving up for our own or
our children’s education.
|Good budget planning will help you take away the stress of
personal budgeting and
"keep your fingers on the pulse" of your personal finances.
6 Personal Budgeting Tips
Important tips to keep personal budgeting as stress free as possible include these following suggestions:
Create a financial
List down the expenses you know you will incur throughout the year – including
taxes (approximate amounts) so you don’t count money as savings that you will actually need to pay back to the Tax
Department. Your calendar should also contain your savings goals, an emergency fund (containing at least three
months of living expenses at the very least) and an amount for something you consider a ‘reward’ – the latter might
be a holiday or a small luxury you have been setting your sights on.
Follow the 50/20/30 principle for Minimalist
This handy principle is a great way to start for those who are new to
saving. It stipulates that you should allow yourself to spend 50 per
cent of your income on essentials (including groceries, housing, educational fees, electricity and water bills,
transport/ fuel etc.), set aside 20 per cent for savings (this includes debts and emergency funds), and allow
yourself 30 per cent of your income for the things that enhance your lifestyle – the list can include meals out,
cable television, sporting/ fitness pursuits, etc.
The rule can have fantastic indirect effects on your health, since a detailed
analysis of your expenditure can reveal habits that do little good yet place a considerable dent in your
finances from week to week. These can include late nights, alcohol
consumption and other addictive pursuits that require expenditure and take up a considerable chunk of your
List down your weekly
When it seems like you are never able to save, it is vital to analyse exactly what you are spending your money
on. You can do this in two ways: either by listing down absolutely
everything you have purchased throughout the week, or by using your debit or credit card to pay for all items –
the latter is probably the easiest way to keep tab of hidden traps that prevent you from setting money aside
Identify ways that you can cut costs
It is vital to look into essential such as insurance coverage, in case there is a
way that you can lower your premium yet still have essential coverage. For instance, your insurance company might
give you a significant discount if you take both your home and auto policies with them. You might also decide to
raise your deductible, or to make your home more disaster resistant/ secure. Don’t assume you are getting the best
possible deal; shop around until you find the company that offers the best service at a fair price.
|If you have a skill that can be
marketed, it might be a good idea to consider
starting up your own business, that will give you more
and increase your chances to earn more.
Study the interest rates of all
Try to pay off loans with higher interest early; use online tools to study
the exact amount you could save on your mortgage, for instance, by making higher monthly or yearly payments. If
you are currently negotiating a mortgage, try to opt for one that takes up less than 28 per cent of your monthly
income. Otherwise, you could face major struggles in meeting other financial obligations or find that you are
having to tighten your belt so much, that your quality of life suffers.
Try to increase your
You could be at a stage in your life where you feel that you have built enough
experience to start a new
business. If you are content with the stability offered by your current
job, there is no need to quit immediately. Start doing something you love and excel at part-time, put in a minimum
financial investment but maximum effort in your free time, until you feel that your business is solid enough to
dedicate yourself full-time to.