Hi all,I would like to talk about budget management that we
don't give significant attention to it in our early life.
There are 10 important rules to manage our budget
efficiently.Let's see them.
1-)Track your spending.
Whatever you spent ,write it down and always ask yourself before
spending "do I really need it?"
You can download app such as, Budget Planner for android.
2-)Calculate your net worth.
Calculate your after-tax income.
3-)Boost your emergency funds to 8 months of expenses.
You may be fired or may quit your job for some reasons
.Thus,you need to survive until to get a new job.8 months is enough to get a
new job.
4-)Invest 20% of your net income to saving accounts.
Especially,invest 10% of your net income to retirement fund.
5-)Spend 30% of your net income for your wants.
Spend your 30% of money for entertainment,dining
out,dressing,special purchasing, vacation, memberships ,and so on.
6-)Spend 50% of your net income for fixed needs.
For example,housing,bank loans,foods,utilities(water
bill,electicity bill,natural gas bill),transportation,GSM,Internet ,and so on.
7-)Set automatic payments for fixed needs and savings.
That helps us to cut unnecessary spendings.Because,we can
know our balance after automatic payements done.
8-)Have a saving goal.
Give a name of your saving account/fund that motivates you
to achieve.
9-)Round your spendings up.
When you spent 8.90 for food .Write it 9 TL down .In this
way,you can save 0.1 TL that increases cumulatively.
10-)Try to get discount.
Every discount that you achieve will increaseyour savings.
