Many consumers complain about being broke or short of cash. The weekly paychecks seem to come and go with many bills remaining to be paid and not enough food in the refrigerator. For some people, the problem is a matter of properly budgeting money and spending only what is truly available. In order to make your finances work, it is important to make a sound budget and not to stray from what you have put down on paper.
Make your largest and most important spending items your top budget priority. Your rent or mortgage payment will be a top priority as well as making sure you have food, gas, and other necessary amenities. Be sure to budget some money for clothing or other items that are necessary for you or your children. Personal finance is about budgeting what is necessary first and leaving a small amount money for fun and entertainment if you’ve determined there is money left over for these extras.
A good rule of thumb is to leave about five percent of your take home income for movies, a night out, or other non-essential items. Putting this money on a Visa prepaid card makes sure that you will not go over the amount you have set for yourself. Simply spending money on entertainment and other extras just because the opportunity arises is a sure way to find yourself in debt when unexpected expenses come up.
Making a budget work for you is primarily about being responsible with your cash. Write everything down, starting with the amount in your paycheck, and determine what you can spend. Be sure to budget in a little room for savings to cover those unexpected expenses.