Especially as the holidays approach, many of us need to be more conscious with our finances this time of year. While saving money can be difficult, especially if you're living on your own, there are things you can do to get your budget under control. Here are some steps you can take to spend more efficiently and create a budget system for yourself.
Write down fixed and variable expenses
The first step toward proper budgeting is knowing exactly how much you spend. Take a moment to write down all of your fixed costs for the month. This includes things like rent and any subscriptions that you have. Then, write down variable costs — these are the things you have to pay every month that can change in cost, like energy bills and gas for your car. Knowing this will help you budget appropriately.
Follow the 50/30/20 rule
A good rule of thumb for anyone is the 50/30/20 rule. This means that, in general, you should be spending half of your income on those expenses we discussed above, while 30% of your income should be saved for wants, and 20% should be put away into savings.
Identify room for improvement in your daily spending
If you find that you're consistently spending over 30% of your income on personal spending, it's important to find places where you can cut back. Tracking your spending using either a spreadsheet or an app can help you identify problem areas and places where you can be being more careful.
Consider money-saving measures in your necessities
While saving money on necessary costs is slightly more difficult, it is possible. Sometimes, all it takes is a little creativity. And when it comes to savings, every little bit helps.
