Personal Finance

I found this video that could help us do a rightful budget. We thought that we are already expert in doing the budget but whatever you are doing is actually not enough. We need to break this method, Salary – Bills = Savings instead Salary – 10% Savings = Bills. Here’s how:

You should always think the real cost:

real cost definition. The cost of producing a good or service, including the cost of all resources used and the cost of not employing those resources in alternative uses.

Meaning to say you should mind your expenses, where exactly did you spend your money. Let’s say you are so drooling over the new pair of shoes of your friend, you asked the brand and how much was it then you bought it during your payout, you did not expect that the amount that you spend for the pair of shoes is actually 10 or 15 days of you working hard.

You can try this too, this is actually what I am doing actually I lacked of something and that is to segregate I did the segregation before but got no time.

List your all expenses then in the end of the month segregate it, label it with Grocery, Bills ( Light, Water, Cable, Internet) Tuition fees, Allowance for kids, Babysitter. And then check the personal shopping that you did, you will be surprise how much you spent for just wants and not needs.

You might want to check this https://www.youtube.com/watch?v=HC5z4PX4PjQ for all the details

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