Personal budgeting

Hey... i'm just writing this to share with you all what i knew about budgeting. You must have your salary or paycheck each month and do want to know how to manage it. Ok, if you do keep on reading.

Firstly,your goal here to have proper management and also keep track of your inflow and outflow of cash.You will be able to obtain a very systematic and proper system of book keeping and be your own accountant.

Rule 1
Assess your current financial status.
Make a reality check on how much you really earn each month and how much debt you have. Earning includes monthly salary,bonuses, and other types of inflow.Debts includes how much you owe people,bank,credit cards, financial institution,loan and other types of outflow.

Rule 2
Know your spending pattern.
Ok,do you have a regular expenses and repetitive pattern each month? List it down... This may include electricity,telephone,water,multimedia (astro or cabel tv and internet). Other living expenses include food and groceries,clothes,rent,debts,transportation (included are bus fare,loan car payment and petrol for your car. Unexpected expenses included replacement or repair/upkeep of your house and other.

Rule 3
Track all inflow and outflow
Ok, this step is easy but very difficult to implement. You have to discipline yourself. Keep all the receipts of all your purchases and record them down. You will be suprised of how much you spend on stuff. Not to forget jot down the money you receive each month too.

Rule 4
Apportion or allocate your money
Ok, try these step. Allocate your money wisely. How about categorizing it into a few categories. For example : 70% is for spending and 30% on saving the money. Then allocate it into small portion for the saving you can separate it to emergency(take this portion out if emergency happens),long term (use this money when you are old or for children university ) and short term (use this for marriage). Spending portion you can separate it according to your needs and refer to Rule 2.

Rule 5
Improvise
Change your budget or spending pattern if you need. This is because different events occurs and sometimes your income is not the same for each month.

You should be able to handle your money better in the future.