Eric Arnold Planswell - Smart Budgeting Tips: Keep Your Finance on Track

Sometimes you might feel hurt when people around you comment on your low income. After this, you may go through stress and feel anxious about your financial situation. 

In such a condition, financial experts like Eric Arnold Planswell suggest going with smart budgeting tips. This is the idea of making the most of your income, be it low or high. 

So, don't feel stressed anymore; just keep reading the proven measures of budgeting your income. 


Determine the Goal of Your Budget

The first step to planning your budget is to determine the goal behind it. When you know the goals, you ensure your financial steps with motivation. Also, it helps you get a clear picture of your financial procedures. 


Here we've some questions that can help you while entering into budgeting. 

  • What is important to you, travelling or saving up for essential needs?

  • What is that goal that finds you challenging?

  • Does your goal give you motivation even in times of financial hardships?


Categories Your Goals

The next step is to put your goals into the categories:- 


Short-term goals: This includes the purchase of furniture, weekend planning, payment of bills, or creating an emerging fund.


Long-term goals: This includes the deposit of a home, payment of outstanding debts, investing in the business, and saving for retirement.


Planning your goals helps you take little steps toward the improvement of your financial situation. When you make efforts to cover your short-term goals, you get confident about achieving long-term goals ultimately.


Analyze Your Spending Habits

Effective budgeting requires you to assess your money management habits. This means analyzing how much you are spending out of your income. 


You can prepare a list of your income and expenses, which helps you keep track of your transactions. 


Categorize Your Expenses

After taking an overview of your transaction history, you can categorize your expenses into:-


Fixed cost: This includes monthly rent, bills, and payments of insurance or loans. 


Variable cost: This includes shopping, entertainment, eating outside, or spending on desiring needs. 


Work on Budgeting Rule

After knowing the motivation of planning a budget, goals, and expenses, you can plan for monthly savings. 


You can implement a 50/30/20 budgeting rule on your income, be it low, high, or temporary. It can help you save smartly. 


The 50/30/20 budgeting rule looks like:

  • 50% of income: cover your fixed costs. 

  • 30% of income: cover your variable costs. 

  • 20% of income: cover debts or save. 



Asides from this, if you find it difficult to maintain your finances, you can take the help of financial experts like Eric Arnold Planswell.

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