How to Develop a budget for saving money

Everybody wants to live a stress free life.To live a stress free life you have to follow few basic rules with a little self-discipline and motivation, you will soon be on the road to financial freedom.

Step One:

Always you have to remember that debt is the number one enemy because debt is one of the main reason of stress. Debt can prevents you from achieving your financial goals. The loss of the debt is like trying to lose weight. Debt is so easy to avoid it to clear. If you have a debt of $ 500 is likely to end up paying more than $ 600 back with the amount of interest. Therefore, if possible, instead of trying to save something and pay cash to borrow the money you have to pay the debt for years.

Step Two:

If you have no debt, then you can work on their savings cushion, and this will become your soft place to land if a shot. Try to create a mattress that is equivalent to three times their monthly salary, and only use that money in a real emergency. If you have a mortgage bond which can be accessed in an emergency, would be the best place to store your extra money, so your interest payments would be lower. Otherwise keep that money in an easily accessible, but also earns good interest.

Step three:

Earlier this month, the rate of all outstanding invoices and monthly debts. Do not place these as they may cost you more in the long run if you leave these debts accumulate. For example, if electricity is interrupted by the postponement of the bill, which would have to fall twice what it is to put them back.

Step Four:

Very few people actually have a budget, however, only one or two hours to create. This gives a better idea of ​​where your money goes each month. In preparing your budget, you should have three columns. The first should be the income received, which is all the money that you are getting each month. The second column should be all fixed costs. These are expenses that have to pay each month, deposit or rent, car payments, insurance and memberships. The third column is things like food, fuel and personal expenses. This is the column to keep track of, as is likely to collect a lot of places where you are wasting your hard earned cash. You may notice that you are spending R400 a month to buy cuppuccinos, and may actually use some of that money to pay other debts faster.

Taking charge of your financial situation is something we should all be doing. You should be aware of where your money goes each month and how you can build a good nest egg for the future. If you are struggling to get out of your paycheck every month is the time to look for other ways to earn extra money.