Managing your budget: Creating a Balance

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Managing your budget: Creating a Balance

by: Maria Carmen

 

When you think of managing yourself more efficiently you usually look towards you’re spending – compare how much you earn to how much you spend in any given month. You also focus on your fixed expenses and compare them with your variable expenses. A good household budget involves controlling your variables expenses and thus saving more towards the bottom line in order to meet the fixed expenses more viably and on time.

The first outgoing in a month is probably your mortgage, the second might be insurance and so on and so forth till your lease is paid up and so are your credit cards. Managing all these well means you don’t incur interest costs – and that is something you want to manage and control aggressively, otherwise you’ll end up in a loop paying time and again and not getting much out of it.

Now comes the part where you have to manage your variables – for instance how much would you want to spend on family entertainment. Is a night out at this point really worth it? Or should you be spending that much for dinner? In order to be more penny wise – look out for discounts, from your entertainment spending to groceries. Make the time to venture into the coupon world, after all every penny saved is earned.

In balancing out payments for fixed expenses and saving on your variables what you are inevitably doing is creating a nest. Now be very careful, it might be tempting but you can’t touch this – this is your life blood. It’s purely your liquidity and what you really want to do is increase it. Look for investments left, right and center. Notice the market trends, and even though you may not have much it will still be enough to start off with.

 

Author bio: Maria Carmen is the founder of Wellington World Travels. The Wellington Family shares their world travels and family adventures. Join their community by sharing your own travel experience!

Maria Carmen

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