Many people would love to go on vacations or be able to buy the things they need, but that’s not always possible. The truth is that many of the things people buy are not always necessary, thus reducing their budget for vacations or for all the other things that they’d like to have.
If you’re wondering how you can improve this, it’s actually easy. There’s a rule of 50%-30%-20% for managing your budget, while there are also plenty of other things that you can do to increase your income. Let’s take a look at that rule and see what you can do.
50% for Bills
When you count your bills and your money, make sure it doesn’t cost you more than 50% of your whole income. Count everything that you have to pay each month – the utility bills, the mortgage or the rent, the gas bills for your car and the credit. The whole amount should be below the given percentage to make sure you can survive from month to month.
30% for Daily Expenses
When you manage your budget, leave 30% of all your income for food and other expenses. Learn how to cook at home and buy fresh ingredients for your cooking. Don’t buy more than what you need and always pay attention to all those small things – groceries, bread, sweets and other ingredients that you need to have in your home.
20% for Saving
Each month you should save about 20% of your income. The reason is simple – you will have money for a future vacation or for unexpected expenses that can arise in the future. If it’s possible, you could save more money, depending on how much you spend for other things.
A Business
If you want to increase your earnings, you could start a small business. If there’s something that you know how to do perfectly, you can try to earn money out of it. For example, if you know how to make websites, you could make sites for others and charge for your work.
If you’re a woman and you like having beautiful nails, try taking a course for becoming a nail technician and applying gel nails. Some women pay a small fortune for having beautiful gel nails, so you could make good money. You could also do other things, like learning how to create interior designs, how to clean a house or how to run a coffee shop.
Some business ideas require more investment than others, but there’s surely something that you could do for increasing your earnings and still apply the above rule. The best thing, however, is to choose something that you’re good at and it will all come easier for you.
Everyone would love to have a bigger income, but that’s not always possible. However, what’s possible is to manage your finances in such a way that you have enough from paycheck to paycheck. Of course, it’s also possible to do some extra activities to earn more, but we’ll get to that shortly.
Make a List
First of all, you need to make a list of the things that you really need each month. When you get your salary, start writing what you have to pay from that money – the bills, the rent or the mortgage and all the other necessary expenses for the next period of time. Think about the food that you eat and all the extra things that you need – like clothing or house cleaning solutions.
Cut the Unnecessary Expenses
Everyone has unnecessary expenses, like eating downtown every night or buying more and more clothing. If it’s not necessary, you shouldn’t buy it. For example, you could save a lot of money by eating at home and learning how to prepare your own food. It may not seem easy at first, but some dishes are so easy that everyone can do – for example a steak and some french fries are easy to cook and very tasty. Apart from this, it will let you have a similar experience to eating in a restaurant, but you’ll be proud of saving money, eating healthy and also learning how to cook.
Reduce the Bills
Reducing the utility bills is another way of saving money, not to mention you’ll help the environment. Take short showers and make sure you turn off the lights when you leave your home. Apart from this, wash your laundry once a week and sort the colors – white, black and colored. This way, you’ll wash more clothes at once and you’ll use less water and soap. Don’t leave the air conditioning unit running while you’re not at home and do the same for the heating unit. It may take a few minutes to cool or warm the interior, but you’ll see the difference in the money that you’ll pay.
Don’t forget that these are just simple examples, and it’s up to you if you’re able to save some money each month rather than spend it all on different things that you don’t need. With small changes and easy saving exercises, you’ll have more money from one month to another.
How to Gain Your Financial FreedomJuly 12, 2017 - 9:51 amMany people would love to go on vacations or be able to buy the things they need, but that’s not always possible. The truth is that many of the things people buy are not always necessary, thus reducing their budget for vacations or for all the other things that they’d like to have. If you’re […]
