Building An Empire On A Budget
Nobody want to be broke, right? We all want to make sure that we have enough money not only in the present, but also for the future.
For some people who are fortunate enough, this is never a major concern. But for the rest of us we have to struggle with the need to pay bills today and the desire to have a nest egg set aside for the future. Thankfully there are a few things that you can do to save for your future, no matter how tight your budget is.
Follow your budget
There’s a reason you set a budget for your money. It ensures that you don’t overspend and end up not having enough money to pay your bills. Sticking to your budget means that you won’t have to dip into your extra money.
Reevaluate your budget
Do you really need as much spending money as you’ve allotted yourself each month? And is each and every one of those 102 TV channels necessary? Review and tighten your budget and you’ll be surprised by how much money you’ll be able to put away monthly.
The 5-10% rule
As a rule of thumb you should be setting aside 5-10% of your weekly income for your retirement fund. If you are living on an extremely tight budget, try putting 5% into a savings account or RRSP. The more you can put away, the better. And you would be surprised by how little you miss the extra money once you don’t have access to it.
Little things add up
A lot of the time it’s not the large purchases that stop us from saving money, it’s the smaller ones. A dollar here, five dollars there can add up and you would be shocked at the amount of money yearly that slips away. Do you really need a coffee and donut from the local coffee shop every morning? Cutting out the little expenses like this can add up, and quickly.
Be careful with credit
While some forms of credit are inevitable (mortgage, car loan) others should be considered a luxury. And luxuries aren’t necessarily something you need. While it’s a good idea to have a credit card for emergencies, it’s easy to get sucked into the buy now pay later lifestyle. Too many people live off of credit and this is NEVER a good idea. You will end up with all of your money going towards minimum payments rather into your savings account. If you spend more than you can realistically pay you will end up in a vicious cycle of monthly payments that never see your debt go down.
About the author:
Vern Marker is an expert on a variety of topics including budgeting, marketing, and business. Want to ask an expert about something specific? Check out YoExpert.com
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This is a million dollars advise, building your empire on a good financial budget. You can build an empire if you have good financial planning in place, it is not when you have million that you can start planning. Planning and living on your budgeted income is very important for everyone.
Financial planning is important and small purchases can really run away with cash. that’s for sure. It’s really noticeable how much you spend on lattes out, etc. if you use some sort of financial planning or budgeting software. It can be quite a shock to see the tally at the end of the month for those $2 and $3 purchases.