As a former hedge fund manager and current business owner, Lonny S. Bernath is a talented money management expert who is as careful with his personal finances as he is with his professional ones. This is an area where many people struggle, which can lead to debt mounting up and difficult living conditions. If you would like to be able to manage your income more effectively, consider all of these tips in order to create a strong personal budget.
List Your Expenditures
One of the first things that you need to do when creating a budget is to get a good idea of where your money is currently going. As such, you need to list every single expenditure that you incur during the month, regardless of how small. You can then divide this list into essential and non-essential expenditures, thus giving you an idea of what you can cut out.
Create A Goal
Many people start saving money with the vague idea that doing so may benefit them later on. Unfortunately, this lack of focus in saving often results in these efforts being disregarded in fairly short order. Instead, try to create a defined goal that will give you something to shoot towards, thus offering you the motivation that you need to stop spending.
Avoid Using Cards
Lonny S. Bernath notes that the convenience of being able to pay for things by card often results in people losing track of how much money they have actually spent. If you are planning a purchase, make sure you check your account first so you know that you can afford it.