The Best Way To Budget Money
March 26, 2021 | Peyton Sawyer
What’s the best way to budget money? Glad you asked. These days it seems like the need for budgeting skills is crucial to financial survival. There are lots of ways to budget money but at the end of the day, the best way to budget money is the way that works for you.
Let’s take a look at some budgeting tips and tricks from the pros. Here’s a quick breakdown so you can develop the best way to budget money that works for you and when to get a title loan.
Learn The Best Way To Budget Money
Record Your Expenses
The best way to budget money is to start with a super clear picture of your spending habits. It’s pretty difficult to plan for the unknown, so that should be the first place your start. Go ahead, challenge yourself.
Set a goal to record all of your expenses. I know that may seem like a crazy task, but It shouldn’t be to nuts. Start out small, manageable goals are the best kind.
Give it one day, record every expense. Don’t wait until the end of the day to write down what you spent. It’s super important to record your spending in real-time, this exercise is meant to raise your spending awareness.
At the end of the day, pull out your expenses and review them. Take the opportunity to identify each expense and ask yourself, did that purchase fit in with my financial priorities?
Once you have successfully recorded your spending for a day, go ahead and bump up your goal. Record your spending for a week. The information you obtain from this part of the exercise is less about recognizing current spending habits, and more about identifying recurring costs.
Focus on Priorities
Priorities, that’s the element most of us lack when it comes to finances. Most folks spend what they earn, and that becomes a real problem. Heck, that’s why we’re talking about the best way to budget money.
When it all boils down, will you have the finances necessary to live the life you want to live, to pay the bills, to save for the future, maybe even take an occasional vacation.
Set Long And Short-Term Savings Goals
Since we’re talking about prioritizing, another great hack when it comes to the best way to budget money is organizing your savings goals. One simple way to get things organized is to set long and short-term goals.
Saving for a down payment on a house? Maybe it’s for a new car, these are both great examples of short-term savings goals. You could also throw in things like saving for a vacation or next semester’s tuition.
Short-term savings goals should be focused on the here and now. When we talk about long-term savings goals we generally focus on things like investing for retirement or paying off large debts like mortgages and student loans.
Yes, paying off debt counts as saving money. Since debt incurs interest, any amount you payoff is money saved over the term of the loan.
The 50/30/20 Rule
If your family was anything like mine growing up you may have heard this rule or something referenced by your parents, I know I certainly did. If not, no worries, It’s really quite simple.
The 50/30/20 rule simply means you allocate 50% of your income to needs, 30% to wants, and 20% to financial planning.
50% is a lot, but let’s take a moment and define the “Needs” category a little better. Housing, grocery, transportation, insurance, basically everything you need to live on day to day should amount to roughly 50% of what you earn.
In the wants category, be sure to include everything you like to have, but don’t necessarily need. Things like internet subscriptions, a night out on the town, movies, and entertainment all fit in the wants category.
The remaining 20% should go to planning for your financial future. Everything you are saving for and all of your debt falls under this category. As long as you balance your spending with a framework like the 50/30/20 rule, you will minimize any future financial emergencies.
What About Emergencies?
Emergency savings is very important when it comes to the best way to budget money. Unforeseen car or house repairs can derail the best laid financial plans in a hurry.
It’s good to know that even in times of emergency you have options. At Wisconsin Title Loans, Inc. we offer car title loans to the folks of Wisconsin in times of emergency.
What is a Title Loan?
What’s a title loan in Wisconsin you ask? A title loan is a short-term financing option that’s secured by the title to your car. Unlike traditional financing, a title loan from Wisconsin Title Loans, Inc. takes less time and paperwork, and they work with just about everyone.
That’s right, don’t worry about your credit, all you need is a Driver’s License or State ID, a clean title to your vehicle, and your vehicle for inspection purposes. The best thing about a title loan? You can get the money you need in as little as 30 minutes.
How To Get a Wisconsin Title Loan
Go to WisconsinAutoTitleLoansInc.com. The easy application is right on the main home page. It only takes a minute fill out and send in. Don’t go anywhere--one of our dedicated team members will reach out shortly to answer any questions and get you on your way.
Get Quick and Easy Wisconsin Title Loans
The next time you feel like your money train is off the rails, don’t panic, WisconsinTitleLoans.com is on your side with our quick and easy title loans.
If you're worrying about the best way to budget money, worry no longer. Just use our advice above to get on track with your budget!