Posts Tagged ‘Finance Tips’
The housing department to the City of Stockton, CA has this very interesting article on how to manage their personal finances. This article reflects a lot about the importance of maintaining a budget, an amount spent for certain categories, pay needs first, and change the budget as needed:
Step 1: Get organized!
The first step in building a personal budget is knowing what you are spending your money. To do this, you have to keep track of all expenses which for at least a month. That will help examine how it spends its money and how you can change your habits. Use a small notebook to keep track of everything you buy.
Step 2: What to buy?
Now that is keeping track of everything you buy, divide your spending into different categories, eg ‘milk, bread, meat’ go under ‘Eating’ and things like ‘gasoline, brakes, and tires’ will go under’ Carro’-Use the chart located at the back of this page to organize all your expenses.
Step 3: What Pay First?
It is very important to know what you need to pay costs and expenses which are flexible. NEED TO PAY Expenses are things like paying your home (mortgage) or rent. Expenses that can be flexible are things that you have the power to change how, food, utilities (electricity and water), and clothing. Remember that certain payments were needed to pay before any other expenses. Pay your credit cards before paying for your home or your income is a bad idea!