Who loves to make and track budget? I do not expect a lot of people to answer that they love to waste time on a budget. I am the first to hate that. Assign a certain amount for each categories on your list and tracking every cent spent is boring and can even be frustrating.
To keep a budget simple and easy to follow with almost no efforts, you can resume it like this:
((Income) – (Savings)) – (Bills) = (This money is yours)
Every time you get income deposited to your bank account, transfer a certain amount of your income to your saving or investing account. I use a percentage to determine how much I save but some will prefer a fixed amount. It should be used to build up an emergency fund, early retirement fund or other very important projects.
Once your savings are transferred, pay your bills. Now that all your obligations are met, you have the remaining amount for you.
Prioritizing your savings may sound weird at first but it will become a good habit in no time when you see the numbers growing. Saving first will help you make better choices, not like thinking “I will start saving later”.
Even if you can only afford to save 5$ on each paycheck, do it, with a good saving account, this amount will grow because of interests and you will be able to move it to a more advantageous investment product later to get better returns.
Other strategies like putting all your pocket change into your savings can help you collect an unexpected amount of money in a year.
Enjoy your saving!