It does not matter whether you use personal budgeting software or pen and notebook for personal finance budgeting.
The most important things are drawing up a personal finance budgeting plan and following the personal finance budgeting plan.
What are the tips for personal finance budgeting plan?
The rules are very simple. You need to overestimate all the expenses and underestimate your income.
You need to get the actual figure by monitoring your expenditure for the past month. You need to write down all your spending, including the package of potato chip and the can of soft drinks.
You can use the actual figure to do the personal finance budgeting plan. You can add 10% to inflate the expense.
You need to deduct 10% from your monthly income. Once you do that, you will not feel that you have so much money to spend.
Many personal finance budgeting plans fail because they are impossible to follow. If you think you can cut all your expenses by half, then your personal finance budgeting plan is doomed to fail.
Nobody likes to feel as if he is cheating himself out of enjoyment of life.
That is why having a workable personal finance budgeting plan is important.
You can see that in some cases, the expenses may even exceed your income.
You need to reveal all your expenses and see if you can cancel any subscription.
You can cancel the gym membership if you go only once a week. You can go to the nature park instead. You can cancel the magazine subscription and get your information online.
Once you have cancel off the subscriptions and membership, you can see that you have reduced the expenses permanently.
If you find that you can only save $50 from your personal finance budgeting plan, you can challenge yourself to spend less on each and every expense columns.
Let us suppose you have budgeted $200 for gas. That means you have a budget of $50 for gas each week. You can try to take public transportation one day in a week so that you do not use the full amount of $50 for the gas.
You will find great satisfaction for the ability to save money.
You will find that you have save $300 on top of the $50 in a month. You will feel very happy with the workable personal finance budgeting plan.
The fact that you allow yourself to spend money, and yet you have discipline yourself, is the cause for happiness.
The trick to a successful personal finance budgeting plan is to allow yourself to spend mentally, and to cut costs on every occasion.
This is how many parents train their kids to save. They give $10 as pocket money to their kids. That means they allow the kids to spend. At the same time, they teach self discipline, so that their kids save part of the $10.
Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways.