5 Tips on Budgeting

[mathewhayden]

1.Think of a budget as a useful tool—a written financial plan that helps you set goals and measure progress.
2.Start by coming up with a sales revenue target. Make it your best estimate.
3.Based on past experience, estimate your cost of goods sold (e.g., 70 percent of sales) and subtract it from the sales revenue to come up with your estimated gross margin.
4.Forecast variable expenses (items such as travel and commissions that vary according to the level of sales) and fixed expenses (items like taxes and rent that stay the same, regardless of sales). Subtract these expenses from your gross margin to arrive at your estimated net income (before federal taxes).
5.Break your annual budget into quarters and monitor your progress every three months to detect problems and make corrections.

[jennifer888]

These are great budgeting tips for a business, but can be applied to individual budgeting as well.

As a Stay at Home Mom, I am always looking for a way to cut costs. Budgeting is the number one way I have found to save money.

Another fantastic way to save money is to negotiate with your service providers, or lien holders, for a lower rate. You can only get what you ask for.

So many Americans are afraid to negotiate, they are letting their fear cost them $$$!

[urvi88]

Thanks for sharing such great information, it will surely help me a lot.

[Lilliana]

Great tips.

I would had that having a savings line in your budget as well as a misc. line helps a ton for making sure you come in under budget.

[vishenda]

Thanks for sharing these tips :)

[smartwonderwoman]

Making a list of your top priorities for spending. Try to plan ahead. Be wise to reach the goal of saving for your future. It is useless to work hard without earnings to keep. That should be your goal.

[optwizard]

Shop only with cash, debit cards or checks. You’ll spend less.
Save receipts. This will help you to monitor your spending.
Save loose change. At the end of the month roll it up and take it to the bank. You’ll be surprised how quickly it adds up.
Use coupons on products you usually buy.
Use a shopping list and then stick to it.
Use electronic bill paying and save on stamps and late fees.
Keep track of your credit card purchases in your checkbook register. Whenever you make a purchase record it in the register so there are no surprises at the end of the month when you get your bill.
Give up bad habits such as smoking, drinking or gambling.
Carpool to work. You’ll save on gas and wear and tear on your car.
Cut entertainment costs by renting videos rather than going to the movies.
Eat out less frequently. Bring your lunch to work with you.
Stay healthy, eat right, buy a few pieces of exercise equipment and drop the gym membership.

[OC CPA]

Its amazing what you figure out when you start budgeting. I have saved on useless spending since I started tracking everything.

[Kim_Mango]

Shop only with cash, debit cards or checks. You’ll spend less.


As a freelance writer, I took on an assignment with Mango Money where I have been using a new tool to budget my money, a prepaid debit card.

Initially it was awkward for me because I wasn't sure how it fit into helping me budget my money. I have a debit card from my checking account so what is the benefit of paying any additional fees to use a prepaid debit card, I asked myself.

Well, it's been four months now since taking on this gig. I agree that if you shop only with cash, debit cards or checks you'll spend less. What I do now is transfer a minimmum of $500 a month to the prepaid card to avoid the $5 monthly fee. I use it for food, gasoline, haircuts, eating out, etc.

I definitely use less money now since I've been able to compartmentalize this spending. You can learn more at the website if you're interested in trying this yourself, http://www.mangomoney.com

[#Stanford2010#]

for me the easiest way of budgeting is improving wages, get new jobs, stop using car and cut credit card and use traditional paper cash to purchase anything