by Setting up a budget is an important step towards financial independence. You get a better insight into where your money is going and is more intentional with how you use each dollar.
However, some people give up budgeting because of how rigid it can feel. In a recent YouTube video, Financial Guru Kate quays shared some of the strategies she uses to stretch every dollar they have while they enjoy budgeting.
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Having fun with budgeting does not mean that you spend irresponsibly money. Instead, viewing budgeting from a different mindset requires it to be built up to exciting financial goals in the long term.
According to CNBC, budgets can lead to a limiting mentality and they can be difficult to keep up. However, Kaden advised a more flexible approach and suggested having a different budget for each month of the year. “If you have a static budget … This is where I think people think that budgeting is not working,” she said.
It is important to determine different budgets for your accounts every month. For example, you can have an annual subscription that you have to pay as of July. That is why it would be logical to have a different budget in June than your budget in July.
Some people may recognize that they spend more money in certain months and choose to spend less money during their less busy months. It is known that many people tend to spend the most during the holidays, so having a slow month or two just before the holidays can give you more financial flexibility if you need it the most.
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Will that trip to the gas station $ 46 cost? Around it up to $ 50. Kaden argued for completing variable costs when calculating how much you have to pay. You always know how much your monthly subscription costs, but things like gas and groceries have variable costs.
It is better to overestimate your expenses than to underestimate your costs, and you can plan this round-up method for higher costs. In an article by Ramsey Solutions, Geldexpert Rachel Cruze suggested the same, especially when you start to budget for the first time. She advised to give yourself some margin with things like groceries and eating out.
If you have any money left, quays suggested placing it in a high -interest savings account, an emergency fund or a budget buffer. That is a separate bank account of your emergency reasons, and you can pay for extra costs if you exceed your budget.
