Make the most of a weekly budget plan
Sometimes, long term budgeting may not go as per plan! Thus, it is better to plan on a short term basis like weekly or fortnightly, which is much easier to follow and which is able to provide much better results. One should try to make weekly plans, rather than a holistic framework of the budget which may not be feasible.
Tricks for planning weekly budget
- Gather data: collect all the information about your previous expenses. Enlist all the major expenses including the rents, bills, mortgages, cable etc.
- Don’t cut down small niceties: spending on trivial things like coffee during lunch hours, dining out and taking a cab do not increase your expenses as much as compared to housing, tuitions or health care, which are more likely to cause overspending. Medical emergencies are the major culprits, when it comes to ruining budgets.
- Keep emergency funds: our experts suggest that one should raise a fund enough to sustain for three months to take care of your emergency crisis like getting a shower fixed by plumber, car breakdown or getting locked out etc.
- Ignore the reward games: many credit card companies offer you exciting offers such as 1-10% cashback offers which lure the customers, but tend to burden you with expenditure. Thus, these should be avoided.
- Prioritize your goals: do not indulge in impulsive shopping. Keep yourself away from stores and if you are an online shopper, try not to disclose your credit card details on any site to help you frauds from taking place.
Controlling the debts:
Debt may be another big problem, which you cannot lower unless and until you stop overspending. We bring about some effective measure to help you cut down your debts.
- Sorting & prioritizing debts: try to list out all your debts and arrange them in a decreasing order to know your priority, knowing the highest source of debt.
- Set targets: after sorting the credit card, in order of highest to lowest expenses, target the one with maximum interest rate by keeping only necessary expenditures on its tab and avoid any extra spending, at the same time. Balance transfers to other low-interest accounts can also be made, but up to a limited extent.
- Tackle checking account fees: sometimes, a low checking account balance may eat up a part of your balance or may charge you with additional fees. Thus, one should take care of these or should go for free checking accounts.
- Plan a path to zero debt: set a destined target to keep you determined enough to cut down your debt